Smartsheet (NYSE:SMAR) and ChannelAdvisor (NYSE:ECOM) Head-To-Head Analysis

ChannelAdvisor (NYSE:ECOMGet Rating) and Smartsheet (NYSE:SMARGet Rating) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Institutional & Insider Ownership

94.3% of ChannelAdvisor shares are owned by institutional investors. Comparatively, 90.2% of Smartsheet shares are owned by institutional investors. 4.6% of ChannelAdvisor shares are owned by company insiders. Comparatively, 4.6% of Smartsheet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for ChannelAdvisor and Smartsheet, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ChannelAdvisor 0 5 0 0 2.00
Smartsheet 0 2 10 0 2.83

ChannelAdvisor presently has a consensus target price of $24.03, indicating a potential upside of 5.36%. Smartsheet has a consensus target price of $49.27, indicating a potential upside of 36.70%. Given Smartsheet’s stronger consensus rating and higher possible upside, analysts plainly believe Smartsheet is more favorable than ChannelAdvisor.

Profitability

This table compares ChannelAdvisor and Smartsheet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ChannelAdvisor 23.74% 7.11% 5.46%
Smartsheet -33.88% -42.47% -21.40%

Volatility & Risk

ChannelAdvisor has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Smartsheet has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Valuation and Earnings

This table compares ChannelAdvisor and Smartsheet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ChannelAdvisor $167.73 million 3.91 $47.22 million $1.29 17.68
Smartsheet $550.83 million 8.47 -$171.10 million ($1.74) -20.71

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

Summary

ChannelAdvisor beats Smartsheet on 8 of the 14 factors compared between the two stocks.

About ChannelAdvisor

(Get Rating)

ChannelAdvisor Corporation, together with its subsidiaries, provides software-as-a-service (SaaS) solutions in the United States and internationally. The company's SaaS is a cloud platform that helps brands and retailers to improve their e-commerce operations, expand to new channels, and grow sales. Its suite of solutions includes various platform modules, including Marketplaces module that connects customers to third-party marketplaces, and allows brands and distributors to manage purchase orders, shipment notifications, stock quantities, and invoices for multiple retail dropship partners; Digital Marketing module that creates, manages, and evaluates advertising using a variety of ad formats across multiple channels; Shoppable Media module that allows brands to provide web visitors to purchase using dynamic links to in-stock retail product pages or carts, or with information on where products can be purchased from local retail stores; and Brand Analytics module, which helps brands for e-commerce channels with actionable insights into how products are performing across thousands of retailer websites and marketplaces. Its customers include online businesses of brands and retailers, as well as advertising agencies that use its solutions on behalf of their clients. The company was incorporated in 2001 and is headquartered in Morrisville, North Carolina.

About Smartsheet

(Get Rating)

Smartsheet, Inc. engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D. Creason and Brent R. Frei in June 2005 and is headquartered in Bellevue, WA.

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