Critical Review: CommerceHub (CHUBK) & Adobe Systems (ADBE)

CommerceHub (NASDAQ: CHUBK) and Adobe Systems (NASDAQ:ADBE) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

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This is a summary of recent ratings and recommmendations for CommerceHub and Adobe Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CommerceHub 0 0 0 0 N/A
Adobe Systems 0 8 22 0 2.73

Adobe Systems has a consensus price target of $218.66, indicating a potential upside of 1.19%. Given Adobe Systems’ higher possible upside, analysts clearly believe Adobe Systems is more favorable than CommerceHub.

Profitability

This table compares CommerceHub and Adobe Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CommerceHub N/A N/A N/A
Adobe Systems 24.40% 24.42% 14.22%

Valuation & Earnings

This table compares CommerceHub and Adobe Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CommerceHub $111.12 million 8.81 N/A N/A N/A
Adobe Systems $7.30 billion 14.57 $1.69 billion $3.59 60.19

Adobe Systems has higher revenue and earnings than CommerceHub.

Risk and Volatility

CommerceHub has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500. Comparatively, Adobe Systems has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Insider & Institutional Ownership

53.3% of CommerceHub shares are owned by institutional investors. Comparatively, 87.0% of Adobe Systems shares are owned by institutional investors. 0.3% of Adobe Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Adobe Systems beats CommerceHub on 10 of the 11 factors compared between the two stocks.

CommerceHub Company Profile

CommerceHub, Inc., together with its subsidiaries, provides cloud-based e-commerce fulfillment and marketing solutions for large retailers, marketplaces, consumer brands, and marketplaces primarily in the United States and Canada. The company provides assortment expansion solutions, which enable its retailer customers to communicate electronically with their drop-ship suppliers; and demand channel solutions that allow sellers to upload their entire product catalog to platform and then transform and syndicate that product catalog to a range of e-commerce demand channels to facilitate consumer demand generation. It also offers solutions for enhanced delivery experience, which helps retailers and suppliers enhance their consumer delivery networks through the application of algorithms that optimize shipping decisions and allocate physical product inventory across fulfillment locations. CommerceHub, Inc. was founded in 1997 and is headquartered in Albany, New York.

Adobe Systems Company Profile

Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. This segment's flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The company's Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social marketing, targeting, advertising and media optimization, digital experience management, cross-channel campaign management, and audience management solutions, as well as video delivery and monetization to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. Its Print and Publishing segment offers products and services, such as eLearning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company markets and licenses its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. The company was founded in 1982 and is headquartered in San Jose, California.

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