Yelp (YELP) Competitors

SPS Commerce (NASDAQ:SPSC) and Yelp (NYSE:YELP) are both mid-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their community ranking, valuation, institutional ownership, dividends, earnings, profitability, media sentiment, analyst recommendations and risk.

Which has higher valuation and earnings, SPSC or YELP?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPS Commerce	$637.77M	8.01	$77.05M	$2.04	66.33
Yelp	$1.41B	1.70	$132.85M	$1.92	19.19

Does the MarketBeat Community prefer SPSC or YELP?

Yelp received 692 more outperform votes than SPS Commerce when rated by MarketBeat users. However, 73.54% of users gave SPS Commerce an outperform vote while only 68.13% of users gave Yelp an outperform vote.

Company	Underperform	Outperform
SPS Commerce	Outperform Votes 642 73.54%	Underperform Votes 231 26.46%
Yelp	Outperform Votes 1334 68.13%	Underperform Votes 624 31.87%

Do analysts recommend SPSC or YELP?

SPS Commerce currently has a consensus price target of $207.11, suggesting a potential upside of 53.06%. Yelp has a consensus price target of $37.17, suggesting a potential upside of 0.86%. Given SPS Commerce's stronger consensus rating and higher possible upside, equities research analysts clearly believe SPS Commerce is more favorable than Yelp.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	0 Sell rating(s)	5 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.55
Yelp	2 Sell rating(s)	6 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	1.89

Do insiders & institutionals believe in SPSC or YELP?

99.0% of SPS Commerce shares are held by institutional investors. Comparatively, 90.1% of Yelp shares are held by institutional investors. 1.0% of SPS Commerce shares are held by company insiders. Comparatively, 7.4% of Yelp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Does the media prefer SPSC or YELP?

In the previous week, SPS Commerce had 2 more articles in the media than Yelp. MarketBeat recorded 10 mentions for SPS Commerce and 8 mentions for Yelp. Yelp's average media sentiment score of 1.34 beat SPS Commerce's score of 1.14 indicating that Yelp is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
SPS Commerce	7 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive
Yelp	6 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is SPSC or YELP more profitable?

SPS Commerce has a net margin of 12.08% compared to Yelp's net margin of 9.41%. Yelp's return on equity of 18.07% beat SPS Commerce's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
SPS Commerce	12.08%	12.27%	10.10%
Yelp	9.41%	18.07%	13.55%

Which has more volatility and risk, SPSC or YELP?

SPS Commerce has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Yelp has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Summary

SPS Commerce beats Yelp on 10 of the 18 factors compared between the two stocks.