SPS Commerce (NASDAQ: SPSC) and Radiant Logistics (NASDAQ:RLGT) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Valuation and Earnings

This table compares SPS Commerce and Radiant Logistics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SPS Commerce $206.56 million 4.88 $22.91 million $0.52 112.66
Radiant Logistics $758.16 million 0.31 $26.97 million N/A N/A

Radiant Logistics has higher revenue and earnings than SPS Commerce.

Profitability

This table compares SPS Commerce and Radiant Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SPS Commerce 3.36% 2.65% 2.21%
Radiant Logistics 0.51% 1.28% 1.39%

Insider and Institutional Ownership

97.4% of SPS Commerce shares are owned by institutional investors. 2.8% of SPS Commerce shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for SPS Commerce and Radiant Logistics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPS Commerce 0 3 7 0 2.70
Radiant Logistics 0 0 0 0 N/A

SPS Commerce presently has a consensus target price of $76.67, indicating a potential upside of 30.88%. Given SPS Commerce’s higher possible upside, equities analysts clearly believe SPS Commerce is more favorable than Radiant Logistics.

Summary

SPS Commerce beats Radiant Logistics on 9 of the 11 factors compared between the two stocks.

SPS Commerce Company Profile

SPS Commerce, Inc. is a provider of cloud-based supply chain management solutions, providing network-proven fulfillment, sourcing and item assortment management solutions, along with retail performance analytics. The Company provides its solutions through the SPS Commerce platform, a cloud-based product suite that manages the way suppliers, retailers, distributors and logistics firms orchestrate the sourcing, set up of new vendors and items, and fulfillment of products that customers buy from retailers and suppliers. The Fulfillment solution provides fulfillment automation and replaces or augments an organization’s existing trading partner electronic communication infrastructure, enabling suppliers to have visibility into the journey of an order and comply with retailers’ rule books and enabling the electronic exchange of information among various trading partners through various protocols. The Community Development solution provides communication programs based on its best practices.

Radiant Logistics Company Profile

Radiant Logistics, Inc. operates as a third-party logistics company, providing multi-modal transportation and logistics services. The Company is organized in two geographic operating segments: United States and Canada. Its transportation services for both the United States and Canada segments are placed into categories of freight forwarding and freight brokerage services. The Company services an account base consisting of consumer goods, food and beverage, manufacturing and retail customers, which the Company supports from a network of operating locations, as well as an integrated international service partner network. As of June 30, 2016, it provided these services through a multi-brand network, including 18 Company-owned offices. As of June 30, 2016, it had approximately 10,000 asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines in its carrier network. Its brands include Radiant, Wheels, Airgroup, Adcom, DBA and Service By Air.

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