Contrasting The Ultimate Software Group (ULTI) & SEA (SE)

The Ultimate Software Group (NASDAQ: ULTI) and SEA (NYSE:SE) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares The Ultimate Software Group and SEA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Ultimate Software Group 1.59% 5.31% 1.91%
SEA -141.10% N/A -48.73%

Institutional and Insider Ownership

68.7% of SEA shares are owned by institutional investors. 4.9% of The Ultimate Software Group shares are owned by insiders. Comparatively, 0.2% of SEA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares The Ultimate Software Group and SEA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Ultimate Software Group $940.73 million 7.62 $14.05 million $0.48 499.52
SEA N/A N/A N/A N/A N/A

The Ultimate Software Group has higher revenue and earnings than SEA.

Analyst Ratings

This is a summary of current ratings for The Ultimate Software Group and SEA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Ultimate Software Group 1 3 16 0 2.75
SEA 0 0 6 0 3.00

The Ultimate Software Group currently has a consensus price target of $243.47, indicating a potential upside of 1.54%. SEA has a consensus price target of $18.67, indicating a potential upside of 59.14%. Given SEA’s stronger consensus rating and higher probable upside, analysts clearly believe SEA is more favorable than The Ultimate Software Group.

Summary

The Ultimate Software Group beats SEA on 6 of the 9 factors compared between the two stocks.

About The Ultimate Software Group

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.

About SEA

Sea Limited, formerly Garena Interactive Holding Limited, is an Internet company. The Company operates through three segments: digital entertainment, e-commerce and digital financial services. The Company has developed an integrated platform consisting of digital entertainment focused on online games, e-commerce, and digital financial services focused on e-wallet services. Its platforms include Garena, Shopee, and AirPay. Garena provides access to engaging mobile and personal computer (PC) online games, live streaming game play, as well as social features such as user chat and online forums. Shopee is an e-commerce marketplace where users come together to browse, shop and sell on-the-go, anytime, anywhere. AirPay App is the Company’s digital financial services business that provides e-wallet services to consumers through the AirPay App and to small businesses through the AirPay counter application.

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