Contrasting Cornerstone OnDemand (NASDAQ:CSOD) & Activision Blizzard (NASDAQ:ATVI)

Cornerstone OnDemand (NASDAQ:CSOD) and Activision Blizzard (NASDAQ:ATVI) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

94.0% of Cornerstone OnDemand shares are held by institutional investors. Comparatively, 72.1% of Activision Blizzard shares are held by institutional investors. 9.4% of Cornerstone OnDemand shares are held by insiders. Comparatively, 1.3% of Activision Blizzard shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cornerstone OnDemand and Activision Blizzard, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cornerstone OnDemand 0 3 6 0 2.67
Activision Blizzard 1 3 21 1 2.85

Cornerstone OnDemand presently has a consensus target price of $61.50, suggesting a potential upside of 44.16%. Activision Blizzard has a consensus target price of $64.58, suggesting a potential upside of 8.78%. Given Cornerstone OnDemand’s higher possible upside, equities analysts clearly believe Cornerstone OnDemand is more favorable than Activision Blizzard.

Volatility & Risk

Cornerstone OnDemand has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Activision Blizzard has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Cornerstone OnDemand and Activision Blizzard’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cornerstone OnDemand -0.70% 40.28% 4.82%
Activision Blizzard 23.18% 13.16% 8.75%

Valuation and Earnings

This table compares Cornerstone OnDemand and Activision Blizzard’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cornerstone OnDemand $576.52 million 4.49 -$33.84 million $1.17 36.46
Activision Blizzard $6.49 billion 7.03 $1.50 billion $2.08 28.54

Activision Blizzard has higher revenue and earnings than Cornerstone OnDemand. Activision Blizzard is trading at a lower price-to-earnings ratio than Cornerstone OnDemand, indicating that it is currently the more affordable of the two stocks.

Summary

Activision Blizzard beats Cornerstone OnDemand on 10 of the 15 factors compared between the two stocks.

Cornerstone OnDemand Company Profile

Cornerstone OnDemand, Inc., together with its subsidiaries, provides learning and human capital management software through software-as-a-service model worldwide. Its enterprise human capital management platform comprises four product suites, such as Recruiting Suite that helps organizations to attract, hire, and onboard the right employees; Learning Suite, which provides robust, a modern learning management software to supports compliance, knowledge sharing, and employee-driven development training; Performance Suite that provides tools to manage goal setting, performance reviews, competency assessments, development plans, continuous feedback, compensation management, and succession planning; and HR Administration Suite, which provides an aggregated view of all employee data with workforce planning, self-service management, and compliance reporting capabilities. The company also offers professional services, including application configuration, system integration, business process re-engineering, change management, and training. It serves business services, financial services, healthcare, pharmaceuticals, insurance, manufacturing, retail, and technology industries. Cornerstone OnDemand, Inc. was founded in 1999 and is headquartered in Santa Monica, California.

Activision Blizzard Company Profile

Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. It develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offers downloadable content. The company also maintains a proprietary online gaming service, Battle.net that facilitates the creation of user generated content, digital distribution, and online social connectivity in its games; and develops and publishes interactive entertainment content and services primarily on mobile platforms, such as Android and iOS, as well as distributes its content and services on the PC platform primarily through Facebook. In addition, it engages in creating original film and television content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. The company's products include various genres, including first-person shooter, action/adventure, role-playing, strategy, and others. It serves retailers and distributors, including mass-market retailers, first party digital storefronts, consumer electronics stores, discount warehouses, and game specialty stores through third-party distribution and licensing arrangements in the United States, Australia, Brazil, Canada, China, France, Germany, Ireland, Italy, Japan, Malta, Mexico, the Netherlands, Romania, Singapore, South Korea, Spain, Sweden, Taiwan, and the United Kingdom. The company was incorporated in 1979 and is headquartered in Santa Monica, California.

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