ChannelAdvisor (NYSE:ECOM) and Manhattan Associates (NASDAQ:MANH) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Analyst Recommendations
This is a summary of current ratings and recommmendations for ChannelAdvisor and Manhattan Associates, as provided by MarketBeat.com.
Sell Ratings
Hold Ratings
Buy Ratings
Strong Buy Ratings
Rating Score
ChannelAdvisor
0
1
5
0
2.83
Manhattan Associates
0
1
1
0
2.50
ChannelAdvisor presently has a consensus target price of $18.17, indicating a potential upside of 67.59%. Manhattan Associates has a consensus target price of $55.00, indicating a potential upside of 10.89%. Given ChannelAdvisor’s stronger consensus rating and higher probable upside, equities analysts clearly believe ChannelAdvisor is more favorable than Manhattan Associates.
Earnings and Valuation
This table compares ChannelAdvisor and Manhattan Associates’ top-line revenue, earnings per share and valuation.
Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
ChannelAdvisor
$122.54 million
2.42
-$16.55 million
($0.53)
-20.45
Manhattan Associates
$594.60 million
5.45
$116.48 million
$1.72
28.84
Manhattan Associates has higher revenue and earnings than ChannelAdvisor. ChannelAdvisor is trading at a lower price-to-earnings ratio than Manhattan Associates, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
ChannelAdvisor has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Manhattan Associates has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.
Profitability
This table compares ChannelAdvisor and Manhattan Associates’ net margins, return on equity and return on assets.
Net Margins
Return on Equity
Return on Assets
ChannelAdvisor
-6.64%
-10.13%
-6.21%
Manhattan Associates
18.48%
71.67%
35.18%
Insider & Institutional Ownership
75.1% of ChannelAdvisor shares are held by institutional investors. 7.8% of ChannelAdvisor shares are held by insiders. Comparatively, 1.0% of Manhattan Associates shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Manhattan Associates beats ChannelAdvisor on 8 of the 13 factors compared between the two stocks.
About ChannelAdvisor
ChannelAdvisor Corporation provides software-as-a-service solutions in the United States and internationally. Its e-commerce cloud platform helps retailers and branded manufacturers to improve their online performance by expanding sales channels, connecting with consumers around the world, optimizing their operations for peak performance, and providing actionable analytics to improve competitiveness. Its suite of solutions include various modules, including Marketplaces module that connects customers to third-party marketplaces; and Digital Marketing module, which connects customers to compare shopping Websites that allow customers to advertise products on search engines. The company also offers Where to Buy solution that allows branded manufacturers to provide their Web visitors or digital marketing audiences with information about the authorized resellers that carry their products and the availability of those products; and Product Intelligence, a solution that provides branded manufacturers with insights about online assortment, product coverage gaps, pricing trends, and adherence by their retailers to content guidelines. Its customers include online businesses of traditional retailers, online retailers, and branded manufacturers, as well as advertising agencies that use its solutions on behalf of their clients. ChannelAdvisor Corporation has a strategic partnership with Interpark Holdings Corporation to enhance e-commerce sales in South Korea. The company was founded in 2001 and is headquartered in Morrisville, North Carolina.
About Manhattan Associates
Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers, and other organizations. The company provides supply chain solutions, including distribution management, transportation management, and visibility solutions; omni-channel solutions; and inventory optimization and planning solutions. It also offers Manhattan SCALE, a portfolio of logistics execution solutions that provide trading partner management, yard management, optimization, warehouse management, and transportation execution services; Manhattan Active solutions; and maintenance services. In addition, the company provides professional services, such as solutions planning and implementation, and related consulting services; and training and change management services. Further, it resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. It offers products through direct sales personnel, as well as through partnership agreements with various organizations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Manhattan Associates, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.
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