Head-To-Head Contrast: QuinStreet (NASDAQ:QNST) versus CDK Global (NASDAQ:CDK)

QuinStreet (NASDAQ:QNST) and CDK Global (NASDAQ:CDK) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
QuinStreet 4.04% 8.57% 5.86%
CDK Global 0.35% -59.38% 13.08%

Valuation and Earnings

This table compares QuinStreet and CDK Global’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QuinStreet $455.15 million 1.26 $62.48 million $1.18 9.36
CDK Global $1.91 billion 2.60 $124.00 million $3.14 13.06

CDK Global has higher revenue and earnings than QuinStreet. QuinStreet is trading at a lower price-to-earnings ratio than CDK Global, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for QuinStreet and CDK Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QuinStreet 0 1 3 0 2.75
CDK Global 0 0 4 0 3.00

QuinStreet currently has a consensus target price of $16.50, suggesting a potential upside of 49.46%. CDK Global has a consensus target price of $56.25, suggesting a potential upside of 37.20%. Given QuinStreet’s higher possible upside, equities analysts plainly believe QuinStreet is more favorable than CDK Global.

Insider and Institutional Ownership

87.9% of QuinStreet shares are owned by institutional investors. Comparatively, 82.4% of CDK Global shares are owned by institutional investors. 11.1% of QuinStreet shares are owned by insiders. Comparatively, 0.4% of CDK Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

QuinStreet has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, CDK Global has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Summary

CDK Global beats QuinStreet on 9 of the 14 factors compared between the two stocks.

QuinStreet Company Profile

QuinStreet, Inc., an Internet performance marketing company, provides customer acquisition services for its clients in the United States and internationally. It offers online marketing services to its clients in the form of qualified leads, inquiries, clicks, calls, applications, customers, display advertisements, or impressions through its Websites or third-party publishers. The company provides its services in various verticals, such as financial services, education, business-to-business technology, and home services. QuinStreet, Inc. was founded in 1999 and is headquartered in Foster City, California.

CDK Global Company Profile

CDK Global, Inc. provides software and technology solutions for automotive retailers in the United States and internationally. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. The company offers Dealer Management System (DMS), a portfolio of layered software applications and services for automotive retailers, original equipment manufacturers (OEMs), consumers, and other industry participants manage the acquisition, sale, financing, insuring, parts supply, and repair and maintenance of vehicles. It also provides solutions to retailers and manufacturers of heavy trucks, construction equipment, agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. In addition, the company offers advertising solutions, such as the management of digital advertising spend for automotive retailers, automotive retailer associations, and OEMs; and professional services, custom programming, consulting, implementation, and training solutions, as well as customer support solutions. It serves approximately 28,000 retail locations and OEMs. CDK Global, Inc. is headquartered in Hoffman Estates, Illinois.

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