Comparing OLO (NYSE:OLO) and Constellation Software (OTCMKTS:CNSWF)

Constellation Software (OTCMKTS:CNSWF) and OLO (NYSE:OLO) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Constellation Software and OLO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Software	0	0	3	1	3.25
OLO	0	1	2	0	2.67

OLO has a consensus price target of $9.00, suggesting a potential upside of 4.17%. Given OLO’s higher possible upside, analysts plainly believe OLO is more favorable than Constellation Software.

Volatility & Risk

Constellation Software has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, OLO has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Earnings and Valuation

This table compares Constellation Software and OLO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Software	$10.07 billion	7.65	$730.00 million	$34.97	103.95
OLO	$299.11 million	4.80	-$900,000.00	$0.02	432.00

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

Institutional and Insider Ownership

93.4% of OLO shares are held by institutional investors. 39.3% of OLO shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Constellation Software and OLO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Constellation Software	7.15%	57.43%	14.48%
OLO	1.09%	1.46%	1.32%

Summary

Constellation Software beats OLO on 10 of the 15 factors compared between the two stocks.

About Constellation Software

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.

About OLO

Olo, Inc. engages in the provision of a cloud-based, on-demand commerce platform for multi-location restaurant brands. It enables digital ordering and delivery. The company was founded by Noah H. Glass on June 1, 2005 and is headquartered in New York, NY.