Comparing ChannelAdvisor (NYSE:ECOM) & HubSpot (HUBS)

ChannelAdvisor (NYSE: ECOM) and HubSpot (NYSE:HUBS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider & Institutional Ownership

71.4% of ChannelAdvisor shares are held by institutional investors. Comparatively, 94.6% of HubSpot shares are held by institutional investors. 11.3% of ChannelAdvisor shares are held by insiders. Comparatively, 12.1% of HubSpot shares are held 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.

Earnings and Valuation

This table compares ChannelAdvisor and HubSpot’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ChannelAdvisor $113.20 million 2.00 -$8.00 million ($0.40) -21.25
HubSpot $270.97 million 13.76 -$45.56 million ($1.16) -86.03

ChannelAdvisor has higher earnings, but lower revenue than HubSpot. HubSpot is trading at a lower price-to-earnings ratio than ChannelAdvisor, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

ChannelAdvisor has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, HubSpot has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ChannelAdvisor and HubSpot, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ChannelAdvisor 0 4 4 0 2.50
HubSpot 0 2 14 0 2.88

ChannelAdvisor presently has a consensus price target of $13.88, suggesting a potential upside of 48.40%. HubSpot has a consensus price target of $87.73, suggesting a potential downside of 9.55%. Given ChannelAdvisor’s higher possible upside, analysts clearly believe ChannelAdvisor is more favorable than HubSpot.

Profitability

This table compares ChannelAdvisor and HubSpot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ChannelAdvisor -8.54% -9.48% -5.75%
HubSpot -12.16% -21.93% -7.61%

About ChannelAdvisor

Channeladvisor Corporation is a provider of Software as a service (SaaS) solutions. The Company’s SaaS solutions enable retailer and branded manufacturer customers to integrate, manage and optimize their merchandise sales via hundreds of online channels. The Company’s platform enable its customers to connect with new and existing sources of demand for their products, including e-commerce marketplaces, such as Amazon, eBay, Jet.com, Newegg, Sears and Walmart, search engines and comparison shopping Websites, such as Google, Microsoft’s Bing and Nextag, and social channels, such as Facebook, Instagram and Pinterest. Its suite of solutions provides customers with a single, integrated user interface to manage their product listings, inventory availability, pricing optimization, search terms, data analytics and other functions. It also offers solutions that allow manufacturers to send their Web visitors or digital marketing audiences directly to authorized resellers.

About HubSpot

HubSpot, Inc. (HubSpot) provides a cloud-based marketing and sales software platform. The Company’s software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, Website content management, marketing automation, e-mail, sales productivity, customer relationship management (CRM), analytics and reporting. The Company’s products include HubSpot Marketing, HubSpot CRM and HubSpot Sales. The Company offers Professional Services and support. It offers professional services to educate and train customers on how to leverage its software platform and inbound marketing methodology to transform how their business attracts, engages and delights customers.

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