Splunk (NASDAQ: SPLK) and Park City Group (NASDAQ:PCYG) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Risk and Volatility

Splunk has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Park City Group has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Earnings & Valuation

This table compares Splunk and Park City Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Splunk $949.96 million 12.25 -$355.18 million ($4.34) -19.38
Park City Group $18.94 million 11.50 $3.77 million $0.13 86.16

Park City Group has higher revenue, but lower earnings than Splunk. Splunk is trading at a lower price-to-earnings ratio than Park City Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Splunk and Park City Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Splunk 0 9 28 0 2.76
Park City Group 0 0 2 0 3.00

Splunk presently has a consensus target price of $81.88, indicating a potential downside of 2.64%. Park City Group has a consensus target price of $16.50, indicating a potential upside of 47.32%. Given Park City Group’s stronger consensus rating and higher possible upside, analysts clearly believe Park City Group is more favorable than Splunk.

Institutional & Insider Ownership

28.1% of Park City Group shares are held by institutional investors. 1.4% of Splunk shares are held by insiders. Comparatively, 37.4% of Park City Group shares are held by 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 Splunk and Park City Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Splunk -32.72% -71.89% -33.06%
Park City Group 17.98% 10.33% 8.19%

Summary

Park City Group beats Splunk on 9 of the 13 factors compared between the two stocks.

About Splunk

Splunk Inc. (Splunk) is engaged in the development and marketing of software solutions. The Company’s offerings enable users to collect, index, search, explore, monitor and analyze data. Its offerings address diverse data sets that are referred to as big data and are specifically used for machine data. Machine data is produced by various software application and electronic devices in an organization and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Its products help users in various roles, including information technology (IT), security and business professionals, to analyze their machine data and achieve real-time visibility into and intelligence about their organization’s operations. In addition, the Company offers user behavioral analytics to help detect, respond to and mitigate advanced, hidden and insider threats. The Company offers Splunk Enterprise, which is a machine data platform.

About Park City Group

Park City Group, Inc. is a software-as-a-service (SaaS) provider. The Company delivers its services through software products designed, developed, marketed and supported by the Company. The Company also has a Professional Services business, which conducts customization, implementation and training. The Company has approximately two services groups, such as The Business Analytics Group and The Professional Services Group. The Business Analytics Group offers business-consulting services to suppliers and retailers in the grocery, convenience store and specialty retail industries. The Professional Services Group provides consulting services. The Company’s solutions include Advanced Commerce and Supply-Chain Solutions, and Food Safety Solutions. The Company’s primary advanced commerce and supply-chain solutions include Scan Based Trading, ScoreTracker, Vendor Managed Inventory, Store Level Replenishment, Enterprise Supply Chain Planning, Fresh Market Manager and ActionManager.

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