SEA (NYSE:SE) and Cornerstone OnDemand (NASDAQ:CSOD) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Earnings & Valuation
This table compares SEA and Cornerstone OnDemand's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| SEA | $2.18 billion | 35.43 | $-1,462,800,000.00 | ($2.27) | -103.83 |
| Cornerstone OnDemand | $576.52 million | 5.70 | $-4,050,000.00 | $1.17 | 43.18 |
Cornerstone OnDemand has lower revenue, but higher earnings than SEA. SEA is trading at a lower price-to-earnings ratio than Cornerstone OnDemand, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SEA and Cornerstone OnDemand's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| SEA | -38.59% | -144.79% | -22.93% |
| Cornerstone OnDemand | -4.70% | 51.19% | 6.97% |
Institutional & Insider Ownership
74.4% of SEA shares are owned by institutional investors. Comparatively, 79.9% of Cornerstone OnDemand shares are owned by institutional investors. 0.2% of SEA shares are owned by insiders. Comparatively, 7.2% of Cornerstone OnDemand shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations for SEA and Cornerstone OnDemand, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| SEA | 1 | 2 | 7 | 0 | 2.60 |
| Cornerstone OnDemand | 1 | 3 | 4 | 0 | 2.38 |
SEA presently has a consensus target price of $190.1818, suggesting a potential downside of 19.31%. Cornerstone OnDemand has a consensus target price of $55.6667, suggesting a potential upside of 10.19%. Given Cornerstone OnDemand's higher probable upside, analysts clearly believe Cornerstone OnDemand is more favorable than SEA.
Volatility and Risk
SEA has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Cornerstone OnDemand has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
Summary
Cornerstone OnDemand beats SEA on 9 of the 14 factors compared between the two stocks.
