Reviewing CDK Global (NASDAQ:CDK) & Kuboo (OTCMKTS:SGTB)

CDK Global (NASDAQ:CDK) and Kuboo (OTCMKTS:SGTB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Earnings & Valuation

This table compares CDK Global and Kuboo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CDK Global $1.96 billion 3.02 $207.50 million $3.05 15.94
Kuboo N/A N/A N/A N/A N/A

CDK Global has higher revenue and earnings than Kuboo.

Insider & Institutional Ownership

87.9% of CDK Global shares are held by institutional investors. 0.5% of CDK Global shares are held by insiders. Comparatively, 8.6% of Kuboo shares are held by 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for CDK Global and Kuboo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CDK Global 0 0 3 0 3.00
Kuboo 0 0 0 0 N/A

CDK Global currently has a consensus price target of $64.75, suggesting a potential upside of 33.20%. Given CDK Global’s higher possible upside, equities analysts plainly believe CDK Global is more favorable than Kuboo.

Volatility & Risk

CDK Global has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Kuboo has a beta of -0.3, suggesting that its share price is 130% less volatile than the S&P 500.

Profitability

This table compares CDK Global and Kuboo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CDK Global 57.81% -116.27% 10.20%
Kuboo N/A N/A N/A

Summary

CDK Global beats Kuboo on 7 of the 9 factors compared between the two stocks.

About CDK Global

CDK Global, Inc. engages in the provision of integrated information technology and digital marketing solutions to the automotive retail industry. It operates through following segments: CDK North America and CDK International. The CDK North America segment provides technology-based solutions. The CDK International segment caters to the United States and Canada. The company was founded on September 30, 2014 and is headquartered in Hoffman Estates, IL.

About Kuboo

Kuboo, Inc., doing business as Safe Communications, Inc., provides open and secure family communications. It operates a child safe virtual world that offers games, edutainment, controlled chat, and multiple channels online streaming in one platform. The company was founded in 2004 and is based in Scottsdale, Arizona.

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