Critical Review: Cvent (CVT) vs. Splunk (SPLK)

Cvent (NYSE: CVT) and Splunk (NASDAQ:SPLK) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

62.3% of Cvent shares are owned by institutional investors. 43.0% of Cvent shares are owned by insiders. Comparatively, 3.0% of Splunk shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Cvent has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Splunk has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cvent and Splunk’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cvent N/A N/A N/A ($0.57) -63.16
Splunk $1.07 billion 8.90 -$292.87 million ($4.67) -14.67

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

Profitability

This table compares Cvent and Splunk’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cvent -9.84% -12.55% -6.86%
Splunk -36.81% -75.81% -35.89%

Analyst Ratings

This is a summary of recent recommendations for Cvent and Splunk, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cvent 0 0 0 0 N/A
Splunk 0 9 26 0 2.74

Splunk has a consensus target price of $73.20, suggesting a potential upside of 6.88%. Given Splunk’s higher probable upside, analysts clearly believe Splunk is more favorable than Cvent.

Summary

Cvent beats Splunk on 6 of the 10 factors compared between the two stocks.

Cvent Company Profile

Cvent, Inc. is a cloud-based enterprise event management company. The Company provides solutions for both sides of the events and meetings value chain, such as event and meeting planners, through its Event Cloud, and hoteliers and venues, through its Hospitality Cloud. The Company offers planners a platform that addresses the entire lifecycle of events and meetings, including budgeting, planning, venue sourcing, marketing, management and measurement of meetings. It offers over six product categories, on over two integrated clouds, the Event Cloud and the Hospitality Cloud. The Event Cloud includes approximately five product categories, such as event management software, enterprise solutions software, mobile event applications, pre- and post-event feedback management software, and onsite event solutions. The Hospitality Cloud includes over three product categories, including group marketing solutions, group demand management, and group business intelligence for hotels and venues.

Splunk Company Profile

Splunk Inc. (Splunk) is engaged in the development and marketing of software solutions. The Company’s offerings enable users to collect, index, search, explore, monitor and analyze data. Its offerings address diverse data sets that are referred to as big data and are specifically used for machine data. Machine data is produced by various software application and electronic devices in an organization and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Its products help users in various roles, including information technology (IT), security and business professionals, to analyze their machine data and achieve real-time visibility into and intelligence about their organization’s operations. In addition, the Company offers user behavioral analytics to help detect, respond to and mitigate advanced, hidden and insider threats. The Company offers Splunk Enterprise, which is a machine data platform.

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