SPS Commerce (NASDAQ:SPSC – Get Free Report) and eGain (NASDAQ:EGAN – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Analyst Ratings
This is a breakdown of current ratings and price targets for SPS Commerce and eGain, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SPS Commerce | 2 | 6 | 2 | 1 | 2.18 |
| eGain | 0 | 4 | 0 | 0 | 2.00 |
SPS Commerce presently has a consensus price target of $77.10, suggesting a potential downside of 8.43%. eGain has a consensus price target of $6.50, suggesting a potential upside of 9.24%. Given eGain’s higher possible upside, analysts clearly believe eGain is more favorable than SPS Commerce.
Risk & Volatility
Insider and Institutional Ownership
99.0% of SPS Commerce shares are owned by institutional investors. Comparatively, 53.9% of eGain shares are owned by institutional investors. 0.6% of SPS Commerce shares are owned by company insiders. Comparatively, 38.7% of eGain shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares SPS Commerce and eGain’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SPS Commerce | 10.10% | 13.04% | 10.83% |
| eGain | 9.74% | 11.75% | 7.06% |
Earnings and Valuation
This table compares SPS Commerce and eGain”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SPS Commerce | $751.51 million | 4.03 | $93.34 million | $2.07 | 40.68 |
| eGain | $91.14 million | 1.71 | $8.88 million | $0.32 | 18.59 |
SPS Commerce has higher revenue and earnings than eGain. eGain is trading at a lower price-to-earnings ratio than SPS Commerce, indicating that it is currently the more affordable of the two stocks.
Summary
SPS Commerce beats eGain on 12 of the 15 factors compared between the two stocks.
About SPS Commerce
SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.
About eGain
eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.
Receive News & Ratings for SPS Commerce Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SPS Commerce and related companies with MarketBeat.com's FREE daily email newsletter.
