SPS Commerce (NASDAQ:SPSC) and Legacy Education Alliance (OTCMKTS:LEAI) Head to Head Survey

SPS Commerce (NASDAQ:SPSC) and Legacy Education Alliance (OTCMKTS:LEAI) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Profitability

This table compares SPS Commerce and Legacy Education Alliance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPS Commerce	11.79%	12.10%	10.08%
Legacy Education Alliance	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for SPS Commerce and Legacy Education Alliance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	0	6	5	0	2.45
Legacy Education Alliance	0	0	0	0	0.00

SPS Commerce presently has a consensus target price of $153.70, suggesting a potential upside of 38.81%. Given SPS Commerce’s stronger consensus rating and higher probable upside, analysts plainly believe SPS Commerce is more favorable than Legacy Education Alliance.

Volatility and Risk

SPS Commerce has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Legacy Education Alliance has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Institutional & Insider Ownership

99.0% of SPS Commerce shares are owned by institutional investors. 1.0% of SPS Commerce shares are owned by insiders. Comparatively, 13.0% of Legacy Education Alliance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares SPS Commerce and Legacy Education Alliance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPS Commerce	$703.54 million	5.97	$77.05 million	$2.18	50.79
Legacy Education Alliance	$150,000.00	0.10	-$2.62 million	($0.07)	0.00

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

Summary

SPS Commerce beats Legacy Education Alliance on 12 of the 14 factors compared between the two stocks.

About SPS Commerce

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

About Legacy Education Alliance

Legacy Education Alliance, Inc., together with its subsidiaries, provides educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques in North America, the United Kingdom, and internationally. The company markets its products and services under the Building Wealth with Legacy and Homemade Investor by Tarek El Moussa brands. It provides its programs through various formats and channels, including free workshops, basic trainings, forums, telephone mentoring, one-on-one mentoring, coaching, and e-learning. Legacy Education Alliance, Inc. was founded in 1996 and is headquartered in Cape Coral, Florida.