Datawatch (NASDAQ: DWCH) and CDK Global (NASDAQ:CDK) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Earnings and Valuation
This table compares Datawatch and CDK Global’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Datawatch||$36.26 million||3.15||-$3.99 million||($0.22)||-42.05|
|CDK Global||$2.22 billion||4.26||$295.60 million||$2.26||31.08|
CDK Global pays an annual dividend of $0.60 per share and has a dividend yield of 0.9%. Datawatch does not pay a dividend. CDK Global pays out 26.5% of its earnings in the form of a dividend.
Risk & Volatility
Datawatch has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, CDK Global has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Insider and Institutional Ownership
38.4% of Datawatch shares are held by institutional investors. Comparatively, 85.7% of CDK Global shares are held by institutional investors. 9.4% of Datawatch shares are held by company insiders. Comparatively, 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 will outperform the market over the long term.
This table compares Datawatch and CDK Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Datawatch and CDK Global, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Datawatch currently has a consensus price target of $14.00, suggesting a potential upside of 51.35%. CDK Global has a consensus price target of $76.00, suggesting a potential upside of 8.22%. Given Datawatch’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Datawatch is more favorable than CDK Global.
CDK Global beats Datawatch on 8 of the 14 factors compared between the two stocks.
Datawatch Corporation is engaged in the design, development, marketing, distribution and support of business computer software primarily for the self-service data preparation and visual data discovery markets. The Company also provides services, including implementation and support of its software products, as well as training on their use and administration. The Company’s product family includes Datawatch Monarch, Datawatch Panopticon and Datawatch Report Mining Server (RMS). The Company offers its enterprise products through perpetual licenses and subscription pricing models. The Company also offers educational services for customers and partners implementing and learning about the platform, maintenance and support, and professional services to provide in-depth technical assistance for software implementations. The Company offers an array of live and virtual classroom instruction, including private onsite classes.
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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