American Software (NASDAQ:AMSWA – Get Rating) and Lightspeed Commerce (NASDAQ:LSPD – Get Rating) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Volatility & Risk
American Software has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Lightspeed Commerce has a beta of 3.58, indicating that its share price is 258% more volatile than the S&P 500.
Insider & Institutional Ownership
82.1% of American Software shares are owned by institutional investors. Comparatively, 66.8% of Lightspeed Commerce shares are owned by institutional investors. 9.7% of American Software shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares American Software and Lightspeed Commerce’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Software||$111.41 million||4.77||$8.09 million||$0.37||42.81|
|Lightspeed Commerce||$221.73 million||13.13||-$124.28 million||($1.59)||-12.36|
American Software has higher earnings, but lower revenue than Lightspeed Commerce. Lightspeed Commerce is trading at a lower price-to-earnings ratio than American Software, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for American Software and Lightspeed Commerce, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
American Software presently has a consensus price target of $32.33, suggesting a potential upside of 104.12%. Lightspeed Commerce has a consensus price target of $73.50, suggesting a potential upside of 273.86%. Given Lightspeed Commerce’s stronger consensus rating and higher possible upside, analysts plainly believe Lightspeed Commerce is more favorable than American Software.
This table compares American Software and Lightspeed Commerce’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
American Software beats Lightspeed Commerce on 8 of the 14 factors compared between the two stocks.
About American Software (Get Rating)
American Software, Inc. develops, markets, and supports a range of computer business application software products in the United States and internationally. It operates through three segments: Supply Chain Management (SCM), Information Technology Consulting (IT Consulting), and Other. The SCM segment provides demand optimization, inventory optimization, supply optimization, retail optimization, quality and compliance, PLM, sourcing management, and integrated business planning services. The IT Consulting segment offers IT staffing and consulting services, such as software enhancement, documentation, update, customer education, consulting, systems integration, maintenance, and support services. The Other segment provides purchasing and materials management, customer order processing, financial, e-commerce, and traditional manufacturing solutions. The company markets its products through direct and indirect sales channels to the apparel and other soft goods, retail, food and beverage, consumer packaged goods, durable goods, chemical and process manufacturing, and life sciences industries. American Software, Inc. was incorporated in 1970 and is headquartered in Atlanta, Georgia.
About Lightspeed Commerce (Get Rating)
Lightspeed Commerce Inc. provides commerce enabling Software as a Service (SaaS) platform for small and midsize businesses, retailers, restaurants, and golf course operators in Canada, the United States, Germany, Australia, and internationally. Its SaaS platform enables customers to engage with consumers, manage operations, accept payments, etc. The company’s cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers’ efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, order-ahead and curbside pickup, point of sale, product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, loyalty, customer management, and tailored financial solutions. The company also offers Lightspeed Loyalty; Lightspeed Analytics; Lightspeed Payments, a payment processing solution; and Lightspeed Capital, a merchant cash advance program. In addition, it sells a suite of hardware products to complement its software solutions for the retail and hospitality segments, such as customer facing displays, stands, barcode scanners, receipt printers, cash drawers, payment terminals, and an assortment of other accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montréal, Canada.
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