Xactly (NYSE: XTLY) and CDK Global (NASDAQ:CDK) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Earnings & Valuation
This table compares Xactly and CDK Global’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CDK Global||$2.22 billion||4.22||$295.60 million||$2.26||30.78|
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.
This is a summary of recent ratings and recommmendations for Xactly and CDK Global, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Xactly presently has a consensus target price of $16.59, suggesting a potential upside of Infinity. CDK Global has a consensus target price of $76.00, suggesting a potential upside of 9.26%. Given Xactly’s higher probable upside, analysts clearly believe Xactly is more favorable than CDK Global.
Insider & Institutional Ownership
85.7% of CDK Global shares are held by institutional investors. 0.4% of CDK Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Xactly and CDK Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CDK Global beats Xactly on 10 of the 13 factors compared between the two stocks.
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.
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.
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