Elastic - ESTC Competitors

SPS Commerce (NASDAQ:SPSC) and Elastic (NYSE:ESTC) are both mid-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, community ranking, institutional ownership, dividends, earnings, analyst recommendations, media sentiment and profitability.

Do insiders & institutionals have more ownership in SPSC or ESTC?

99.3% of SPS Commerce shares are owned by institutional investors. Comparatively, 78.4% of Elastic shares are owned by institutional investors. 1.3% of SPS Commerce shares are owned by insiders. Comparatively, 18.8% of Elastic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Which has better earnings and valuation, SPSC or ESTC?

SPS Commerce has higher earnings, but lower revenue than Elastic. Elastic is trading at a lower price-to-earnings ratio than SPS Commerce, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPS Commerce	$450.88 million	11.95	$55.13 million	$1.49	99.62
Elastic	$862.37 million	6.42	-$203.85 million	-$2.70	-21.25

Which has more volatility and risk, SPSC or ESTC?

SPS Commerce has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Elastic has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Does the MarketBeat Community favor SPSC or ESTC?

SPS Commerce received 339 more outperform votes than Elastic when rated by MarketBeat users. Likewise, 74.55% of users gave SPS Commerce an outperform vote while only 66.83% of users gave Elastic an outperform vote.

Company	Underperform	Outperform
SPS Commerce	Outperform Votes 615 74.55%	Underperform Votes 210 25.45%
Elastic	Outperform Votes 276 66.83%	Underperform Votes 137 33.17%

Is SPSC or ESTC more profitable?

SPS Commerce has a net margin of 12.23% compared to Elastic's net margin of -24.80%. SPS Commerce's return on equity of 12.55% beat Elastic's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
SPS Commerce	12.23%	12.55%	10.02%
Elastic	-24.80%	-52.03%	-12.82%

Do analysts rate SPSC or ESTC?

SPS Commerce presently has a consensus target price of $156.17, suggesting a potential upside of 5.21%. Elastic has a consensus target price of $77.38, suggesting a potential upside of 34.87%. Given Elastic's stronger consensus rating and higher probable upside, analysts clearly believe Elastic is more favorable than SPS Commerce.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	0 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.50
Elastic	1 Sell rating(s)	4 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.65

Does the media prefer SPSC or ESTC?

In the previous week, SPS Commerce and SPS Commerce both had 4 articles in the media. SPS Commerce's average media sentiment score of 0.20 beat Elastic's score of 0.10 indicating that SPS Commerce is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
SPS Commerce	1 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Elastic	0 Very Positive mention(s)	3 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

SPS Commerce beats Elastic on 11 of the 17 factors compared between the two stocks.