Critical Review: Upland Software (NASDAQ:UPLD) and Cornerstone OnDemand (NASDAQ:CSOD)

Upland Software (NASDAQ:UPLD) and Cornerstone OnDemand (NASDAQ:CSOD) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Earnings and Valuation

This table compares Upland Software and Cornerstone OnDemand’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Upland Software $149.88 million 7.52 -$10.84 million $1.18 37.80
Cornerstone OnDemand $537.89 million 6.65 -$33.84 million ($0.23) -256.00

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

Volatility & Risk

Upland Software has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Cornerstone OnDemand has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Insider & Institutional Ownership

81.5% of Upland Software shares are held by institutional investors. Comparatively, 92.5% of Cornerstone OnDemand shares are held by institutional investors. 11.6% of Upland Software shares are held by insiders. Comparatively, 9.4% of Cornerstone OnDemand shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Upland Software -11.31% 21.45% 5.82%
Cornerstone OnDemand -2.95% 13.85% 1.49%

Analyst Ratings

This is a summary of recent recommendations and price targets for Upland Software and Cornerstone OnDemand, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Upland Software 0 0 8 0 3.00
Cornerstone OnDemand 0 0 6 0 3.00

Upland Software presently has a consensus price target of $51.75, suggesting a potential upside of 16.03%. Cornerstone OnDemand has a consensus price target of $69.00, suggesting a potential upside of 17.19%. Given Cornerstone OnDemand’s higher possible upside, analysts plainly believe Cornerstone OnDemand is more favorable than Upland Software.

Summary

Upland Software beats Cornerstone OnDemand on 8 of the 13 factors compared between the two stocks.

About Upland Software

Upland Software, Inc. provides cloud-based enterprise work management software in the United States, Canada, and internationally. The company offers a family of software applications under the Upland brand in the areas of information technology (IT), process excellence and operations, finance, professional services, and marketing. Its software applications address enterprise work challenges in various categories comprising project and portfolio management, professional services automation, IT financial management, knowledge engagement, enterprise secure document capture and fax, workflow automation and enterprise content management, supply chain visibility and collaboration, Website management and Web visitor insights, and mobile engagement. The company sells its products through a direct sales organization, as well as through an indirect sales organization that sells to distributors and value-added resellers. It serves customers across a range of industries, including financial services, retail, technology, manufacturing, legal, education, consumer goods, media, telecommunications, government, food and beverage, healthcare, and life sciences, as well as non-profit organizations. The company was formerly known as Silverback Enterprise Group, Inc. and changed its name to Upland Software, Inc. in November 2013. Upland Software, Inc. was founded in 2010 and is headquartered in Austin, Texas. Upland Software, Inc. is a subsidiary of Silverback Enterprise Group Inc.

About Cornerstone OnDemand

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.

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