E-Home Household Service (NASDAQ:EJH) vs. SPS Commerce (NASDAQ:SPSC) Critical Contrast

SPS Commerce (NASDAQ:SPSC) and E-Home Household Service (NASDAQ:EJH) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Risk and Volatility

SPS Commerce has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, E-Home Household Service has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares SPS Commerce and E-Home Household Service”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPS Commerce	$637.77 million	4.04	$77.05 million	$2.23	30.64
E-Home Household Service	$49.40 million	0.61	-$980,000.00	N/A	N/A

SPS Commerce has higher revenue and earnings than E-Home Household Service.

Profitability

This table compares SPS Commerce and E-Home Household Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPS Commerce	11.65%	12.17%	10.14%
E-Home Household Service	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for SPS Commerce and E-Home Household Service, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	1	6	2	1	2.30
E-Home Household Service	1	0	0	0	1.00

SPS Commerce presently has a consensus target price of $99.22, indicating a potential upside of 45.21%. Given SPS Commerce’s stronger consensus rating and higher possible upside, analysts clearly believe SPS Commerce is more favorable than E-Home Household Service.

Insider and Institutional Ownership

99.0% of SPS Commerce shares are owned by institutional investors. Comparatively, 37.3% of E-Home Household Service shares are owned by institutional investors. 1.0% of SPS Commerce shares are owned by company insiders. Comparatively, 10.7% of E-Home Household Service shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

SPS Commerce beats E-Home Household Service on 11 of the 13 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 E-Home Household Service

E-Home Household Service Holdings Limited, together with its subsidiaries, engages in the operation of household services in the People's Republic of China. The company operates through five segments: Installation and Maintenance, Housekeeping Services, Senior Care Services, Sales of Pharmaceutical Products, and Educational Consulting Services. It offers technical home installation and repair, and maintenance and other after sale services; housecleaning, nanny service, maternity matron, and personnel staffing; and heart rate test, daily step count, location and track record, call for help by WeChat or phone, and other care services for senior customers. The company provides its services through an online platform, as well as offline channels. Its customers primarily include individuals and families. E-Home Household Service Holdings Limited was founded in 2014 and is headquartered in Fuzhou, the People's Republic of China.