SPS Commerce (NASDAQ:SPSC) & DCC (OTCMKTS:DCCPF) Head to Head Analysis

SPS Commerce (NASDAQ:SPSC) and DCC (OTCMKTS:DCCPF) are both mid-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Volatility and Risk

SPS Commerce has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, DCC has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares SPS Commerce and DCC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPS Commerce	11.65%	12.17%	10.14%
DCC	N/A	N/A	N/A

Earnings and Valuation

This table compares SPS Commerce and DCC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPS Commerce	$729.76 million	3.87	$77.05 million	$2.23	33.56
DCC	$22.98 billion	0.28	$263.46 million	N/A	N/A

DCC has higher revenue and earnings than SPS Commerce.

Institutional & Insider Ownership

99.0% of SPS Commerce shares are held by institutional investors. 1.0% of SPS Commerce shares are held by company 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.

Analyst Ratings

This is a summary of recent ratings and price targets for SPS Commerce and DCC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	1	6	2	1	2.30
DCC	1	0	1	0	2.00

SPS Commerce presently has a consensus target price of $99.22, suggesting a potential upside of 32.60%. Given SPS Commerce’s stronger consensus rating and higher probable upside, research analysts clearly believe SPS Commerce is more favorable than DCC.

Summary

SPS Commerce beats DCC on 10 of the 13 factors compared between the two stocks.

About SPS Commerce

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

About DCC

DCC plc provides sales, marketing, and support services worldwide. The company operates through DCC Energy, DCC Healthcare, and DCC Technology segments. It sells and markets liquefied petroleum gas (LPG), refrigerants, and natural gas; markets, sells, and retails transport and commercial fuels, heating oils, and related products and services; operates retail petrol stations; resells fuel cards; distributes oil; and provides logistics services. It also offers products and services to healthcare providers, and health and beauty brand owners; contract manufacturing services to the health and beauty sector; nutrition products, such as vitamins and health supplements; beauty products; and product development, formulation, manufacturing, and packaging services. In, addition it distributes consumer technology products, including smart home products, peripherals and software, and accessories, as well as provides supply chain services. The company was founded in 1976 and is headquartered in Dublin, Ireland.