Perficient (PRFT) versus Callidus Software (CALD) Critical Review

Perficient (NASDAQ: PRFT) and Callidus Software (NASDAQ:CALD) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Valuation & Earnings

This table compares Perficient and Callidus Software’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Perficient $485.26 million 1.95 $18.58 million $0.95 28.44
Callidus Software $253.09 million 9.45 -$20.27 million ($0.19) -189.47

Perficient has higher revenue and earnings than Callidus Software. Callidus Software is trading at a lower price-to-earnings ratio than Perficient, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Perficient and Callidus Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perficient 4.20% 9.70% 7.20%
Callidus Software -8.01% -4.16% -2.42%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Perficient and Callidus Software, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perficient 0 1 2 0 2.67
Callidus Software 0 9 2 0 2.18

Perficient currently has a consensus target price of $26.00, indicating a potential downside of 3.77%. Callidus Software has a consensus target price of $33.10, indicating a potential downside of 8.06%. Given Perficient’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Perficient is more favorable than Callidus Software.

Institutional & Insider Ownership

80.3% of Perficient shares are held by institutional investors. Comparatively, 94.5% of Callidus Software shares are held by institutional investors. 3.7% of Perficient shares are held by insiders. Comparatively, 1.6% of Callidus Software shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Perficient has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Callidus Software has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Summary

Perficient beats Callidus Software on 10 of the 13 factors compared between the two stocks.

Perficient Company Profile

Perficient, Inc. provides information technology and management consulting services in the United States. The company designs, builds, and delivers solutions using middleware software products developed by third-party vendors. Its solutions include portals and collaboration, such as searchable data systems, collaborative systems for process improvement, transaction processing, unified and extended reporting, and other services; and platform implementations services, including application server selection, architecture planning, installation and configuration, clustering for availability, performance assessment and issue remediation, security, and technology migrations. The company also offers management consulting services in the areas of organizational change management, business analytics, project management, process excellence, and other; and cloud services comprising architecture, business value and health checks assessments, strategy and road maps, and vendor evaluation and selection services. In addition, it provides product configuration digital marketing services, including search engine marketing, user experience and design, and conversion rate optimization; commerce solutions; and content management solutions. Further, the company offers business analytics; custom applications; business integration; business process management; customer relationship management; enterprise data and business intelligence; enterprise performance management; DevOps; and enterprise mobile solutions. It serves the healthcare, financial services, automotive and transport products, retail and consumer goods, manufacturing, electronics and computer hardware, telecommunications, business services and leisure, media and entertainment, and energy and utilities markets. Perficient, Inc. was founded in 1997 and is headquartered in St. Louis, Missouri.

Callidus Software Company Profile

Callidus Software Inc. provides cloud-based sales, marketing, learning, and customer experience solutions worldwide. The company enables its customers to sell Lead to Money suite of solutions that identify leads, train personnel, implement territory and quota plans, enable sales forces, automate configuration pricing and quoting, manage contracts, streamline sales compensation, capture customer feedback, and provide predictive analytics for competitive advantage. It offers Lead to Money suite and technology solutions, which include sales performance management solutions, such as Commissions, Territory and Quota, and SalesMotivate; Sales Execution solutions, including Configure Price Quote, Contract Lifecycle Management, Datahug, and Revsym; and Customer Engagement solutions comprising Marketing Automation, Voice of the Customer, and ServiceMotivate. The company also provides Sales Enablement and Learning solutions consisting of Enablement, Litmos Learning Management System, Litmos Heroes, and Coaching; Technology solutions, including Database Management System, Thunderbridge Advanced Analytics, Thunderbridge Augmented Intelligence, Workflow, and Connect Enterprise; and Vertical Solutions, such as Producer Pro, Telco Dealer Pro, Incentive Compensation Management, and DS Pro. In addition, it offers a range of services comprising professional, business process outsourcing, maintenance and technical support, and education services Callidus Software Inc. was founded in 1996 and is headquartered in Dublin, California.

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