Benefitfocus (NASDAQ:BNFT) and SharpSpring (NASDAQ:SHSP) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk and Volatility
Benefitfocus has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, SharpSpring has a beta of -1.58, meaning that its share price is 258% less volatile than the S&P 500.
This table compares Benefitfocus and SharpSpring’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Benefitfocus||$256.73 million||6.13||-$25.87 million||($0.79)||-62.38|
|SharpSpring||$13.45 million||8.94||-$4.97 million||N/A||N/A|
SharpSpring has lower revenue, but higher earnings than Benefitfocus.
This is a breakdown of recent recommendations and price targets for Benefitfocus and SharpSpring, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Benefitfocus currently has a consensus price target of $48.70, suggesting a potential downside of 1.18%. SharpSpring has a consensus price target of $12.00, suggesting a potential downside of 14.29%. Given Benefitfocus’ higher probable upside, equities research analysts clearly believe Benefitfocus is more favorable than SharpSpring.
Institutional & Insider Ownership
93.7% of Benefitfocus shares are held by institutional investors. Comparatively, 39.5% of SharpSpring shares are held by institutional investors. 29.0% of Benefitfocus shares are held by insiders. Comparatively, 28.3% of SharpSpring shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Benefitfocus and SharpSpring’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Benefitfocus beats SharpSpring on 9 of the 12 factors compared between the two stocks.
Benefitfocus, Inc. provides cloud-based benefits management platform for consumers, employers, insurance carriers, and brokers in the United States. It operates through Employer and Carrier segments. The company's products for insurance carriers include Marketplaces, which are online shopping environments; eEnrollment that provides online enrollment for benefits; eBilling, an electronic invoice presentment and payment solution; eExchange, a solution for communication; eSales for carriers and brokers to organize and manage accounts, track leads, generate quotes, and create proposals for products; and Core & Advanced Analytics, a data analytics solution. Its products for employers include Benefitfocus Marketplace that streamlines online enrollment, employee communication, and benefit administration; Communication Portal, an employee engagement portal; BenefitStore, a solution for employees to avail various ancillary benefits; ACA Management and Reporting, a solution for employers to manage ACA compliance; Billing & Payment, an electronic invoice presentment and payment application; Consumer-Directed Healthcare Accounts, a solution for health savings accounts management; and consolidated omnibus budget reconciliation act administration solution. In addition, the company provides professional and customer support services, which include implementation services, such as discovery, configuration, deployment, integration, testing, training, and technical support; HR support services; and video library services. Further, it offers partner offerings, such as RedBrick Health that provides access to customizable health assessments, digital coaching, tracking, and challenges; LifeLock that allows employees to purchase identity theft protection; and SAP SuccessFactors that provides employee performance management solutions, as well as Certified Carrier Programs. The company was founded in 2000 and is headquartered in Charleston, South Carolina.
SharpSpring, Inc. operates as a cloud-based marketing technology company worldwide. The company offers SharpSpring, a marketing automation solution for small and mid-size businesses. It markets and sells its products and services through sales teams and third party resellers. The company was formerly known as SMTP, Inc. and changed its name to SharpSpring, Inc. in December 2015. SharpSpring, Inc. was incorporated in 1998 and is headquartered in Gainesville, Florida.
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