Yelp (YELP) Competitors

SPS Commerce (NASDAQ:SPSC) and Yelp (NYSE:YELP) are both mid-cap internet software & services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, media sentiment, valuation and risk.

Which has more volatility & risk, SPSC or YELP?

SPS Commerce has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Yelp has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Which has stronger valuation & earnings, SPSC or YELP?

Yelp has higher revenue and earnings than SPS Commerce. Yelp 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	$637.77M	7.84	$77.05M	$2.14	61.56
Yelp	$1.41B	1.54	$132.85M	$2.08	16.41

Do analysts prefer SPSC or YELP?

SPS Commerce presently has a consensus target price of $192.56, indicating a potential upside of 46.17%. Yelp has a consensus target price of $34.00, indicating a potential downside of 0.41%. Given SPS Commerce's stronger consensus rating and higher probable upside, research analysts plainly believe SPS Commerce is more favorable than Yelp.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	0 Sell rating(s)	4 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.60
Yelp	2 Sell rating(s)	5 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.71

Does the media refer more to SPSC or YELP?

In the previous week, Yelp had 16 more articles in the media than SPS Commerce. MarketBeat recorded 22 mentions for Yelp and 6 mentions for SPS Commerce. SPS Commerce's average media sentiment score of 1.76 beat Yelp's score of 0.79 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	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Yelp	9 Very Positive mention(s)	7 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is SPSC or YELP more profitable?

SPS Commerce has a net margin of 12.13% compared to Yelp's net margin of 9.95%. Yelp's return on equity of 19.42% beat SPS Commerce's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
SPS Commerce	12.13%	12.37%	10.23%
Yelp	9.95%	19.42%	14.62%

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

99.0% of SPS Commerce shares are held by institutional investors. Comparatively, 90.1% of Yelp shares are held by institutional investors. 1.0% of SPS Commerce shares are held by insiders. Comparatively, 7.4% of Yelp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

SPS Commerce beats Yelp on 9 of the 16 factors compared between the two stocks.