SPS Commerce (SPSC) Competitors

SPS Commerce (NASDAQ:SPSC) and New Relic (NYSE:NEWR) are both mid-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, media sentiment, community ranking, earnings, profitability, institutional ownership, dividends and risk.

Which has more risk and volatility, SPSC or NEWR?

SPS Commerce has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, New Relic has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Which has higher earnings and valuation, SPSC or NEWR?

SPS Commerce has higher earnings, but lower revenue than New Relic. New Relic is trading at a lower price-to-earnings ratio than SPS Commerce, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPS Commerce	$536.91M	12.97	$65.82M	$1.83	102.78
New Relic	$925.63M	6.67	-$180.25M	-$2.09	-41.62

Is SPSC or NEWR more profitable?

SPS Commerce has a net margin of 12.23% compared to New Relic's net margin of -14.92%. SPS Commerce's return on equity of 12.06% beat New Relic's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
SPS Commerce	12.23%	12.06%	9.76%
New Relic	-14.92%	-12.82%	-4.02%

Do insiders and institutionals believe in SPSC or NEWR?

99.0% of SPS Commerce shares are owned by institutional investors. Comparatively, 85.9% of New Relic shares are owned by institutional investors. 1.0% of SPS Commerce shares are owned by company insiders. Comparatively, 23.0% of New Relic shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Does the MarketBeat Community prefer SPSC or NEWR?

SPS Commerce received 68 more outperform votes than New Relic when rated by MarketBeat users. Likewise, 73.83% of users gave SPS Commerce an outperform vote while only 68.75% of users gave New Relic an outperform vote.

Company	Underperform	Outperform
SPS Commerce	Outperform Votes 629 73.83%	Underperform Votes 223 26.17%
New Relic	Outperform Votes 561 68.75%	Underperform Votes 255 31.25%

Do analysts rate SPSC or NEWR?

SPS Commerce currently has a consensus target price of $200.25, indicating a potential upside of 6.46%. New Relic has a consensus target price of $85.67, indicating a potential downside of 1.52%. Given SPS Commerce's stronger consensus rating and higher probable upside, equities research analysts plainly believe SPS Commerce is more favorable than New Relic.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.75
New Relic	0 Sell rating(s)	10 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Does the media refer more to SPSC or NEWR?

In the previous week, SPS Commerce had 12 more articles in the media than New Relic. MarketBeat recorded 13 mentions for SPS Commerce and 1 mentions for New Relic. SPS Commerce's average media sentiment score of 0.69 beat New Relic's score of 0.32 indicating that SPS Commerce is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
SPS Commerce	7 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
New Relic	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

SPS Commerce beats New Relic on 15 of the 18 factors compared between the two stocks.