Contrasting Cornerstone OnDemand (CSOD) & Its Rivals

Cornerstone OnDemand (NASDAQ: CSOD) is one of 24 publicly-traded companies in the “Cloud Computing Services” industry, but how does it weigh in compared to its peers? We will compare Cornerstone OnDemand to related companies based on the strength of its valuation, risk, analyst recommendations, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares Cornerstone OnDemand and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cornerstone OnDemand -15.39% -182.51% -8.45%
Cornerstone OnDemand Competitors -57.49% -45.40% -16.58%

Insider & Institutional Ownership

91.7% of Cornerstone OnDemand shares are held by institutional investors. Comparatively, 58.5% of shares of all “Cloud Computing Services” companies are held by institutional investors. 12.6% of Cornerstone OnDemand shares are held by insiders. Comparatively, 21.0% of shares of all “Cloud Computing Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Cornerstone OnDemand has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Cornerstone OnDemand’s peers have a beta of 0.95, meaning that their average stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Cornerstone OnDemand and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cornerstone OnDemand 2 4 5 1 2.42
Cornerstone OnDemand Competitors 76 453 1483 40 2.72

Cornerstone OnDemand presently has a consensus price target of $43.45, indicating a potential upside of 11.42%. As a group, “Cloud Computing Services” companies have a potential downside of 0.08%. Given Cornerstone OnDemand’s higher probable upside, equities research analysts plainly believe Cornerstone OnDemand is more favorable than its peers.

Valuation & Earnings

This table compares Cornerstone OnDemand and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cornerstone OnDemand $445.02 million -$45.49 million -32.23
Cornerstone OnDemand Competitors $933.33 million $18.40 million -81.09

Cornerstone OnDemand’s peers have higher revenue and earnings than Cornerstone OnDemand. Cornerstone OnDemand is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Cornerstone OnDemand peers beat Cornerstone OnDemand on 7 of the 12 factors compared.

Cornerstone OnDemand Company Profile

Cornerstone OnDemand, Inc. is a cloud computing company. The Company provides learning and human capital management software, delivered as Software-as-a-Service (SaaS). Its human capital management platform combines the talent management solutions with analytics and human resources (HR) administration solutions to enable organizations to manage the employee lifecycle. Its enterprise human capital management platform consists of four product suites: its Recruiting suite, which helps organizations to source and attract candidates, assess and select applicants, onboard new hires and manage the entire recruiting process; its Learning suite, which enables clients to manage training and development programs; its Performance suite, which provides tools to manage goal setting, performance reviews, compensation management and succession planning, and HR Administration suite, which supports employee records administration, workforce planning and compliance reporting.

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