ePlus (PLUS) and Servicesource International (SREV) Head to Head Analysis

ePlus (NASDAQ: PLUS) and Servicesource International (NASDAQ:SREV) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Profitability

This table compares ePlus and Servicesource International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ePlus 4.01% 15.06% 7.34%
Servicesource International -15.89% -1.35% -0.54%

Risk and Volatility

ePlus has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Servicesource International has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Valuation and Earnings

This table compares ePlus and Servicesource International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ePlus $1.33 billion 0.75 $50.55 million $4.05 17.63
Servicesource International $252.89 million 1.18 -$32.12 million ($0.44) -7.50

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

Institutional & Insider Ownership

87.6% of ePlus shares are owned by institutional investors. Comparatively, 68.3% of Servicesource International shares are owned by institutional investors. 3.3% of ePlus shares are owned by insiders. Comparatively, 17.9% of Servicesource International 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ePlus and Servicesource International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ePlus 0 1 1 0 2.50
Servicesource International 0 1 0 0 2.00

ePlus presently has a consensus price target of $75.00, suggesting a potential upside of 5.04%. Servicesource International has a consensus price target of $5.25, suggesting a potential upside of 59.09%. Given Servicesource International’s higher probable upside, analysts plainly believe Servicesource International is more favorable than ePlus.

Summary

ePlus beats Servicesource International on 10 of the 14 factors compared between the two stocks.

ePlus Company Profile

ePlus inc. is a holding company. The Company is engaged in the business of selling, leasing, financing and managing information technology. It operates through two segments: technology and financing. The technology segment sells information technology (IT) hardware products, third-party software and maintenance contracts, its own and third-party professional and managed services, and its software. The financing segment operations primarily consist of the financing of information technology equipment, software and related services. Both segments sell to commercial entities, state and local governments, government contractors and educational institutions. The Company is a provider of IT solutions, which enable organizations to optimize their IT environment and supply chain processes. It delivers and integrates IT products and software from various vendors, and provides private, hybrid, and public cloud solutions.

Servicesource International Company Profile

ServiceSource International, Inc. (ServiceSource) is a provider of customer and revenue lifecycle solutions that power enterprise revenue relationships, partnering with business to business technology and technology-enabled companies. The Company operates through two segments: Managed Services, and Cloud and Business Intelligence (CBI). The Company delivers through service teams and integral cloud-based technologies from its database of service. By integrating managed services, cloud software and data, the Company provides its clients with insights into their end customers businesses, end-to-end management and service-contract renewals process. As of December 31, 2016, it managed approximately 143 engagements across 66 clients. Its solutions are designed to optimize recurring revenue across various revenue models, distribution models and segments, including hardware, software, Software-as-a-Service (SaaS), industrial systems, technology-enabled healthcare and life sciences.

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