Bottomline Technologies (NASDAQ: EPAY) and Kayak Software Corp (NASDAQ:KYAK) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Bottomline Technologies and Kayak Software Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bottomline Technologies 0 1 4 0 2.80
Kayak Software Corp 0 0 0 0 N/A

Bottomline Technologies presently has a consensus price target of $33.25, suggesting a potential downside of 0.36%. Given Bottomline Technologies’ higher possible upside, analysts plainly believe Bottomline Technologies is more favorable than Kayak Software Corp.

Insider & Institutional Ownership

92.0% of Bottomline Technologies shares are owned by institutional investors. 2.4% of Bottomline Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Bottomline Technologies and Kayak Software Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bottomline Technologies -7.51% 5.84% 2.54%
Kayak Software Corp 2.58% 2.19% 1.98%

Valuation & Earnings

This table compares Bottomline Technologies and Kayak Software Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Bottomline Technologies $349.41 million 3.87 -$33.13 million ($0.70) -47.67
Kayak Software Corp N/A N/A N/A $0.43 93.19

Kayak Software Corp has higher revenue, but lower earnings than Bottomline Technologies. Bottomline Technologies is trading at a lower price-to-earnings ratio than Kayak Software Corp, indicating that it is currently the more affordable of the two stocks.

Summary

Bottomline Technologies beats Kayak Software Corp on 7 of the 9 factors compared between the two stocks.

Bottomline Technologies Company Profile

Bottomline Technologies (de), Inc. is engaged in providing a set of cloud-based business payment, digital banking, fraud prevention, payment and financial document solutions. The Company helps businesses pay and get paid. It offers hosted or Software as a Service (SaaS) solutions, as well as software designed to run on-site at the customer’s location. It operates through four segments: Payments and Transactional Documents, Hosted Solutions, Digital Banking and Other. The Payments and Transactional Documents segment is a supplier of software products that provide a range of financial business process management solutions, including making and collecting payments and generating and storing business documents. The Hosted Solutions segment provides customers with SaaS technology offerings. The Digital Banking segment provides solutions to banking and financial institution customers. The Other segment consists of its healthcare and cyber fraud and risk management operating segments.

Kayak Software Corp Company Profile

Centralizing online travel deals is smooth sailing for Kayak Software. Through its websites (KAYAK.com, swoodoo.com, and SideStep.com) in about 15 countries, the company displays rates on airfare, hotels, rental cars, and cruises from more than 500 other travel websites. Kayak Software offers fare information from Continental Airlines and American Airlines, as well as prices from Funjet Vacations, Marriott International, and InterContinental Hotel Group, among others. In addition to booking, the firm’s websites and mobile applications provide destination information, travel tips, member discounts, and hotel descriptions. Founded in 2004, Kayak Software filed to go public in late 2010.

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