Contrasting Celerity Solutions (OTCMKTS:CLTY) & SPS Commerce (NASDAQ:SPSC)

Celerity Solutions (OTCMKTS:CLTY) and SPS Commerce (NASDAQ:SPSC) 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, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Celerity Solutions and SPS Commerce”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celerity Solutions	N/A	N/A	N/A	N/A	N/A
SPS Commerce	$611.82 million	11.73	$65.82 million	$2.09	91.38

SPS Commerce has higher revenue and earnings than Celerity Solutions.

Analyst Recommendations

This is a breakdown of current recommendations for Celerity Solutions and SPS Commerce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celerity Solutions	0	0	0	0	0.00
SPS Commerce	0	5	6	0	2.55

SPS Commerce has a consensus target price of $218.00, indicating a potential upside of 14.14%. Given SPS Commerce’s stronger consensus rating and higher possible upside, analysts clearly believe SPS Commerce is more favorable than Celerity Solutions.

Volatility and Risk

Celerity Solutions has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, SPS Commerce has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Celerity Solutions and SPS Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celerity Solutions	N/A	N/A	N/A
SPS Commerce	12.83%	12.60%	10.31%

Insider and Institutional Ownership

99.0% of SPS Commerce shares are owned by institutional investors. 32.3% of Celerity Solutions shares are owned by company insiders. Comparatively, 1.0% of SPS Commerce shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

SPS Commerce beats Celerity Solutions on 9 of the 10 factors compared between the two stocks.

About Celerity Solutions

Celerity Solutions, Inc. provides enterprise applications solutions. The company offers its applications in various areas, such as finance, human capital management, manufacturing, mergers and acquisitions, sales operations efficiency, supply chain, utilities, and Web retail. Celerity Solutions, Inc. was incorporated in 1982 and is based in Redwood City, California.

About SPS Commerce

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.