CDK Global (NASDAQ: CDK) and SendGrid (NYSE:SEND) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Insider and Institutional Ownership
89.7% of CDK Global shares are held by institutional investors. Comparatively, 0.0% of SendGrid shares are held by institutional investors. 0.4% of CDK Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
CDK Global pays an annual dividend of $0.60 per share and has a dividend yield of 0.9%. SendGrid does not pay a dividend. CDK Global pays out 26.5% of its earnings in the form of a dividend.
This is a summary of recent recommendations and price targets for CDK Global and SendGrid, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CDK Global currently has a consensus target price of $76.00, suggesting a potential upside of 11.68%. SendGrid has a consensus target price of $25.33, suggesting a potential upside of 18.66%. Given SendGrid’s stronger consensus rating and higher probable upside, analysts clearly believe SendGrid is more favorable than CDK Global.
Earnings & Valuation
This table compares CDK Global and SendGrid’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CDK Global||$2.22 billion||4.12||$295.60 million||$2.26||30.11|
CDK Global has higher revenue and earnings than SendGrid.
This table compares CDK Global and SendGrid’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CDK Global beats SendGrid on 6 of the 11 factors compared between the two stocks.
About CDK Global
CDK Global, Inc. provides integrated information technology and digital marketing solutions. The Company’s segments include Retail Solutions North America, Advertising North America and CDK International. Through its Retail Solutions North America segment, the Company provides technology-based solutions, including automotive Website platforms, that help automotive retailers, original equipment manufacturers (OEMs) and other industry participants manage the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles. Through its Advertising North America segment, the Company provides advertising solutions, including management of digital advertising spend, for OEMs and automotive retailers. As of June 30, 2016, through its CDK International segment, it provided technology-based solutions similar to the retail solutions provided in its Retail Solutions North America segment in approximately 100 countries outside of the United States and Canada.
SendGrid, Inc. provides a digital communication platform. The Company’s platform enables businesses to engage with their customers through email. It offers three services: Email application programming interface (API), marketing campaigns and Expert services. Its email API service allows developers to use its API in their preferred development framework to leverage its platform to add email functionality to their applications. Its marketing campaigns service allows marketers to upload and manage customer contact lists, create and test email templates, and then execute and analyze multi-faceted email campaigns. Its Expert services help businesses optimize their email delivery. The features of email API include integrations, documentations, internet protocol (IP) management, deliverability, reporting and analytics, mobile support and security. Its marketing campaign services include segmentation and contact management tools, A/B testing, email template editor and analytics and reporting.
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