The Ultimate Software Group (NASDAQ: ULTI) and Amber Road (NYSE:AMBR) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Volatility and Risk
The Ultimate Software Group has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Amber Road has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Institutional & Insider Ownership
72.6% of Amber Road shares are held by institutional investors. 4.9% of The Ultimate Software Group shares are held by company insiders. Comparatively, 13.1% of Amber Road shares are held by company 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.
Valuation and Earnings
This table compares The Ultimate Software Group and Amber Road’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Ultimate Software Group||$781.29 million||8.18||$30.25 million||$0.97||220.49|
|Amber Road||$73.16 million||2.74||-$18.72 million||($0.57)||-12.93|
The Ultimate Software Group has higher revenue and earnings than Amber Road. Amber Road is trading at a lower price-to-earnings ratio than The Ultimate Software Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for The Ultimate Software Group and Amber Road, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Ultimate Software Group||1||4||16||0||2.71|
The Ultimate Software Group presently has a consensus price target of $231.58, indicating a potential upside of 8.28%. Amber Road has a consensus price target of $12.00, indicating a potential upside of 62.82%. Given Amber Road’s stronger consensus rating and higher possible upside, analysts plainly believe Amber Road is more favorable than The Ultimate Software Group.
This table compares The Ultimate Software Group and Amber Road’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Ultimate Software Group||1.99%||3.69%||1.49%|
The Ultimate Software Group beats Amber Road on 9 of the 13 factors compared between the two stocks.
The Ultimate Software Group Company Profile
The Ultimate Software Group, Inc. (Ultimate) is a cloud provider of people management solutions, referred to as human capital management (HCM). The Company’s UltiPro product suite (UltiPro) is an engaging solution that has human resources (HR), payroll and benefits management. As of December 31, 2016, UltiPro included global people management, available in 14 languages with more than 35 country-specific localizations. The solution is delivered through software-as-a-service (SaaS) to organizations based in the United States and Canada, including those with global workforces. The UltiPro solution includes feature sets for talent acquisition and onboarding, HR management and compliance, benefits management and online enrollment, payroll, performance management, compensation management with salary planning, budgeting, and development of incentive plans, succession management, reporting and analytical decision-making and predictive tools, and time and attendance.
Amber Road Company Profile
Amber Road, Inc. is a provider of cloud-based global trade management (GTM) solutions. The Company’s GTM solutions include modules for logistics contract and rate management, supply chain visibility and event management, international trade compliance, and Global Knowledge trade content database to importers and exporters, non-vessel owning common carriers (resellers), and ocean carriers. The Company delivers its GTM solution using a software-as-a-service (SaaS) model. The Company’s solution automates the global supply chain across sourcing, logistics, cross-border trade and regulatory compliance activities. The Company’s GTM solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in approximately 145 countries, and a global supply chain network connecting its customers with the trading partners, including suppliers, freight forwarders, customs brokers and transportation carriers.
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