Head-To-Head Contrast: Cornerstone OnDemand (CSOD) versus Its Peers

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

Institutional and Insider Ownership

91.7% of Cornerstone OnDemand shares are owned by institutional investors. Comparatively, 61.7% of shares of all “Cloud Computing Services” companies are owned by institutional investors. 12.6% of Cornerstone OnDemand shares are owned by insiders. Comparatively, 22.1% of shares of all “Cloud Computing Services” companies are owned 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for Cornerstone OnDemand and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cornerstone OnDemand 2 4 5 1 2.42
Cornerstone OnDemand Competitors 77 454 1488 41 2.72

Cornerstone OnDemand currently has a consensus target price of $43.45, indicating a potential upside of 9.82%. As a group, “Cloud Computing Services” companies have a potential downside of 2.23%. Given Cornerstone OnDemand’s higher possible upside, analysts clearly believe Cornerstone OnDemand is more favorable than its competitors.

Valuation and Earnings

This table compares Cornerstone OnDemand and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cornerstone OnDemand $445.02 million -$45.49 million -32.70
Cornerstone OnDemand Competitors $933.33 million $18.40 million -84.78

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

Volatility and Risk

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

Profitability

This table compares Cornerstone OnDemand and its competitors’ 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 -57.55% -45.41% -16.60%

Summary

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

About Cornerstone OnDemand

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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