Radiant Logistics (NASDAQ: RLGT) and SPS Commerce (NASDAQ:SPSC) are both small-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
This table compares Radiant Logistics and SPS Commerce’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
98.3% of SPS Commerce shares are held by institutional investors. 2.8% of SPS Commerce shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Radiant Logistics and SPS Commerce’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Radiant Logistics||$758.16 million||0.32||$26.97 million||N/A||N/A|
|SPS Commerce||$206.56 million||4.91||$22.91 million||$0.52||113.27|
Radiant Logistics has higher revenue and earnings than SPS Commerce.
This is a summary of recent ratings and recommmendations for Radiant Logistics and SPS Commerce, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Radiant Logistics presently has a consensus price target of $7.00, indicating a potential upside of 38.61%. SPS Commerce has a consensus price target of $76.67, indicating a potential upside of 30.16%. Given Radiant Logistics’ stronger consensus rating and higher possible upside, analysts clearly believe Radiant Logistics is more favorable than SPS Commerce.
SPS Commerce beats Radiant Logistics on 8 of the 12 factors compared between the two stocks.
About Radiant Logistics
Radiant Logistics, Inc. operates as a third-party logistics company, providing multi-modal transportation and logistics services. The Company is organized in two geographic operating segments: United States and Canada. Its transportation services for both the United States and Canada segments are placed into categories of freight forwarding and freight brokerage services. The Company services an account base consisting of consumer goods, food and beverage, manufacturing and retail customers, which the Company supports from a network of operating locations, as well as an integrated international service partner network. As of June 30, 2016, it provided these services through a multi-brand network, including 18 Company-owned offices. As of June 30, 2016, it had approximately 10,000 asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines in its carrier network. Its brands include Radiant, Wheels, Airgroup, Adcom, DBA and Service By Air.
About SPS Commerce
SPS Commerce, Inc. is a provider of cloud-based supply chain management solutions, providing network-proven fulfillment, sourcing and item assortment management solutions, along with retail performance analytics. The Company provides its solutions through the SPS Commerce platform, a cloud-based product suite that manages the way suppliers, retailers, distributors and logistics firms orchestrate the sourcing, set up of new vendors and items, and fulfillment of products that customers buy from retailers and suppliers. The Fulfillment solution provides fulfillment automation and replaces or augments an organization’s existing trading partner electronic communication infrastructure, enabling suppliers to have visibility into the journey of an order and comply with retailers’ rule books and enabling the electronic exchange of information among various trading partners through various protocols. The Community Development solution provides communication programs based on its best practices.
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