CDK Global (NASDAQ:CDK) and Janel (OTCMKTS:JANL) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
82.5% of CDK Global shares are owned by institutional investors. 0.5% of CDK Global shares are owned by insiders. Comparatively, 15.7% of Janel 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.
This table compares CDK Global and Janel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CDK Global pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Janel does not pay a dividend. CDK Global pays out 19.7% of its earnings in the form of a dividend. CDK Global has increased its dividend for 4 consecutive years.
This is a summary of current recommendations and price targets for CDK Global and Janel, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CDK Global currently has a consensus price target of $69.67, indicating a potential upside of 37.46%. Given CDK Global’s higher probable upside, analysts plainly believe CDK Global is more favorable than Janel.
Earnings & Valuation
This table compares CDK Global and Janel’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CDK Global||$2.27 billion||2.71||$380.80 million||$3.04||16.67|
CDK Global has higher revenue and earnings than Janel.
Risk and Volatility
CDK Global has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Janel has a beta of -2.48, meaning that its stock price is 348% less volatile than the S&P 500.
CDK Global beats Janel on 11 of the 14 factors compared between the two stocks.
About CDK Global
CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States and internationally. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. The company offers Dealer Management System (DMS), a portfolio of layered software applications and services for automotive retailers, original equipment manufacturers (OEMs), consumers, and other industry participants manage the acquisition, sale, financing, insuring, parts supply, and repair and maintenance of vehicles. It also provides solutions to retailers and manufacturers of heavy trucks, construction equipment, agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. In addition, the company offers advertising solutions, such as the management of digital advertising spend for automotive retailers, automotive retailer associations, and OEMs; and professional services, custom programming, consulting, implementation, and training solutions, as well as customer support solutions. It serves approximately 28,000 retail locations and OEMs. CDK Global, Inc. is headquartered in Hoffman Estates, Illinois.
Janel Corporation, through its subsidiaries, provides logistics services worldwide. The company's freight forwarding services include arrangement of freight forwarding by air, ocean, and ground; warehousing; destination handling; and distribution and other logistics management services. Its customs brokerage services comprise clearance of shipments through government customs regimes, such as preparing required documentation; calculating and providing for payment of duties; and other services on behalf of customers, as well as arranging required inspections and final delivery. The company also offers customs entry filing; cargo insurance procurement; logistics planning; product repackaging; online shipment tracking; and other value-added logistics services. In addition, it manufactures and distributes industrial mixing equipment for industries, including chemicals, inks, paints, construction, plastics, adhesives, cosmetics, food, and pharmaceuticals. The company was formerly known as Janel World Trade Ltd. and changed its name to Janel Corporation in April 2015. Janel Corporation was founded in 1974 and is headquartered in Lynbrook, New York.
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