CDK Global (NASDAQ: CDK) and Xactly (NYSE:XTLY) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
This table compares CDK Global and Xactly’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
87.9% of CDK Global shares are owned by institutional investors. 0.4% of CDK Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for CDK Global and Xactly, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CDK Global presently has a consensus price target of $76.00, suggesting a potential upside of 8.19%. Xactly has a consensus price target of $17.16, suggesting a potential upside of Infinity. Given Xactly’s higher probable upside, analysts plainly believe Xactly is more favorable than CDK Global.
Earnings and Valuation
This table compares CDK Global and Xactly’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CDK Global||$2.22 billion||4.26||$295.60 million||$2.26||31.08|
CDK Global has higher revenue and earnings than Xactly. Xactly is trading at a lower price-to-earnings ratio than CDK Global, indicating that it is currently the more affordable of the two stocks.
CDK Global pays an annual dividend of $0.60 per share and has a dividend yield of 0.9%. Xactly does not pay a dividend. CDK Global pays out 26.5% of its earnings in the form of a dividend.
CDK Global beats Xactly on 10 of the 13 factors compared between the two stocks.
About CDK Global
CDK Global, Inc. provides integrated information technology and digital marketing solutions. The Company’s segments include Retail Solutions North America, Advertising North America and CDK International. Through its Retail Solutions North America segment, the Company provides technology-based solutions, including automotive Website platforms, that help automotive retailers, original equipment manufacturers (OEMs) and other industry participants manage the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles. Through its Advertising North America segment, the Company provides advertising solutions, including management of digital advertising spend, for OEMs and automotive retailers. As of June 30, 2016, through its CDK International segment, it provided technology-based solutions similar to the retail solutions provided in its Retail Solutions North America segment in approximately 100 countries outside of the United States and Canada.
Xactly Corporation is a provider of cloud-based incentive compensation solutions for employee and sales performance management. The Company delivers its solutions through a software-as-a-service (SaaS) business model. The Company has a customer base, including companies in various industries, such as business and financial services, communications, life sciences, media and Internet, SaaS and traditional software, and retail. Its SaaS solutions are delivered through a cloud-based platform. Its solutions support finance, sales, compensation administrators, information technology and human resources personnel in designing, processing and managing incentive compensation. The Company offers products, including Xactly Incent Enterprise, Xactly Incent Express, Xactly Objectives, Xactly Territories, Xactly Insights, Xactly Quota, Xactly Incent Views, Xactly Inspire and Xactly Connect.
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