Cornerstone OnDemand (CSOD) & SAP (SAP) Critical Comparison

Cornerstone OnDemand (NASDAQ:CSOD) and SAP (NYSE:SAP) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Cornerstone OnDemand and SAP, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cornerstone OnDemand 1 2 6 1 2.70
SAP 0 7 9 0 2.56

Cornerstone OnDemand presently has a consensus price target of $62.20, indicating a potential upside of 10.64%. SAP has a consensus price target of $115.89, indicating a potential downside of 10.24%. Given Cornerstone OnDemand’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cornerstone OnDemand is more favorable than SAP.

Dividends

SAP pays an annual dividend of $1.19 per share and has a dividend yield of 0.9%. Cornerstone OnDemand does not pay a dividend. SAP pays out 26.3% of its earnings in the form of a dividend. SAP has raised its dividend for 2 consecutive years.

Insider & Institutional Ownership

93.0% of Cornerstone OnDemand shares are owned by institutional investors. Comparatively, 4.6% of SAP shares are owned by institutional investors. 9.4% of Cornerstone OnDemand shares are owned by insiders. Comparatively, 7.4% of SAP shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Cornerstone OnDemand and SAP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cornerstone OnDemand -3.87% -15.15% -1.06%
SAP 12.81% 15.70% 9.00%

Risk and Volatility

Cornerstone OnDemand has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, SAP has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cornerstone OnDemand and SAP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cornerstone OnDemand $537.89 million 6.23 -$33.84 million ($0.23) -244.43
SAP $29.18 billion 5.44 $4.82 billion $4.53 28.50

SAP has higher revenue and earnings than Cornerstone OnDemand. Cornerstone OnDemand is trading at a lower price-to-earnings ratio than SAP, indicating that it is currently the more affordable of the two stocks.

Summary

SAP beats Cornerstone OnDemand on 10 of the 18 factors compared between the two stocks.

Cornerstone OnDemand Company Profile

Cornerstone OnDemand, Inc., together with its subsidiaries, provides learning and human capital management software through software-as-a-service model worldwide. Its enterprise human capital management platform comprises four product suites, such as Recruiting Suite that helps organizations to attract, hire, and onboard the right employees; Learning Suite, which provides robust, a modern learning management software to supports compliance, knowledge sharing, and employee-driven development training; Performance Suite that provides tools to manage goal setting, performance reviews, competency assessments, development plans, continuous feedback, compensation management, and succession planning; and HR Administration Suite, which provides an aggregated view of all employee data with workforce planning, self-service management, and compliance reporting capabilities. The company also offers professional services, including application configuration, system integration, business process re-engineering, change management, and training. It serves business services, financial services, healthcare, pharmaceuticals, insurance, manufacturing, retail, and technology industries. Cornerstone OnDemand, Inc. was founded in 1999 and is headquartered in Santa Monica, California.

SAP Company Profile

SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. The company operates through three segments: Applications, Technology & Services; SAP Business Network; and Customer Experience. It offers SAP HANA, which enables businesses to process and analyze live data; SAP Data Hub, a solution for businesses to manage data from various sources; and SAP Cloud platform that offers an enterprise platform-as-a-service. The company also provides SAP Leonardo, a system that combines design thinking services with intelligent technologies for business processes; SAP Analytics Cloud, which leverages the intersection of business intelligence, planning, and predictive analytics; SAP BW/4HANA, a data warehouse solution; SAP S/4HANA, an enterprise resource planning suite for intelligent enterprises; SAP Integrated Business Planning solutions that deliver real-time supply chain planning capabilities; and SAP Business One, an on-premise and cloud business application. In addition, it offers SAP Fiori, an user experience interface; SAP SuccessFactors Human Capital Management solutions that help organizations enhance the value of their workforce; SAP Fieldglass, a cloud-based application for external workforce management and services procurement; SAP Ariba, an online business-to-business marketplace; and SAP Concur, a travel and expense management software. Further, the company provides SAP MaxAttention to turn ideas into value-based predictable outcomes; and SAP ActiveAttention program, a premium-level engagement solution to support smaller businesses. Additionally, it offers SAP Enterprise Support services that provides proactive, predictive, and preventive support for customers across hybrid landscapes; and SAP Preferred Success, which provides a bundle of prescriptive customer success activities for accelerated cloud adoption. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.

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