Critical Contrast: Coupa Software (NASDAQ:COUP) & PTC (NASDAQ:PTC)

Coupa Software (NASDAQ:COUP) and PTC (NASDAQ:PTC) are both large-cap 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

84.0% of PTC shares are held by institutional investors. 3.4% of Coupa Software shares are held by insiders. Comparatively, 10.0% of PTC 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 Coupa Software and PTC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coupa Software 1 7 13 1 2.64
PTC 0 2 13 0 2.87

Coupa Software presently has a consensus target price of $328.57, suggesting a potential upside of 45.56%. PTC has a consensus target price of $120.60, suggesting a potential downside of 5.53%. Given Coupa Software’s higher possible upside, equities analysts clearly believe Coupa Software is more favorable than PTC.

Volatility & Risk

Coupa Software has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, PTC has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Coupa Software and PTC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coupa Software -29.17% -12.12% -2.80%
PTC 8.96% 16.53% 6.29%

Valuation & Earnings

This table compares Coupa Software and PTC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coupa Software $389.72 million 42.51 -$90.83 million ($0.67) -336.91
PTC $1.46 billion 10.23 $130.70 million $1.85 69.01

PTC has higher revenue and earnings than Coupa Software. Coupa Software is trading at a lower price-to-earnings ratio than PTC, indicating that it is currently the more affordable of the two stocks.

Summary

PTC beats Coupa Software on 10 of the 14 factors compared between the two stocks.

Coupa Software Company Profile

Coupa Software Incorporated provides cloud-based business spend management platform. Its platform connects organizations with suppliers globally; and provides visibility into and control over how companies spend money, optimize supply chains, and manage liquidity, as well as enables businesses to achieve savings that drive profitability. The company's platform consists of procurement, invoicing, expense management, and payment modules that form the transactional engine for managing a company's business spend; and offers specialized modules, including strategic sourcing, contract management, contingent workforce, supplier risk management, supply chain design and planning, treasury management, and spend analysis. Its customers include businesses in various industries, including healthcare and pharmaceuticals, retail, financial services, manufacturing, and technology. The company markets its platform primarily through a direct sales force. Coupa Software Incorporated was incorporated in 2006 and is headquartered in San Mateo, California.

PTC Company Profile

PTC Inc. operates as software and services company in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Software Products and Professional Services. It offers ThingWorx, an IIoT platform that enables customers to address digital transformation of their operations, products, and services; ThingWorx Solution Central, a centralized portal in the cloud that allows users of ThingWorx to discover, deploy, and manage ThingWorx applications; and ThingWorx Kepware, which enables users to connect, manage, monitor, and control disparate devices and software applications. The company also provides Vuforia Studio, a cloud-based tool that enables industrial enterprises to author and publish augmented reality (AR) experiences; Vuforia Expert Capture that chronicles the real-time movements of a person wearing an AR headset; Vuforia Engine technology for application development; Vuforia Chalk, a collaboration and remote assistance solution; and Vuforia Spatial Toolbox technology to accelerate the development of spatial computing prototypes and use cases. In addition, it offers Onshape, a cloud-native multi-tenant platform that unites computer-aided design with data management, collaboration tools, and real-time analytics; Creo, a suite of product design software, which provides capabilities for design, real-time simulation, additive manufacturing, design flexibility, advanced assembly design, piping and cabling design, advanced surfacing, virtual prototyping, and other design functions; and Windchill, a product lifecycle management software. Further, the company provides Integrity, an application lifecycle management solution; Servigistics, service parts management solution; and consulting, implementation, training, cloud, and license and support services. The company was formerly known as Parametric Technology Corporation and changed its name to PTC Inc. in January 2013. PTC Inc. was founded in 1985 and is headquartered in Boston, Massachusetts.

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