CounterPath Corporation (CPAH) and COUPA SOFTWARE (COUP) Critical Analysis

CounterPath Corporation (NASDAQ: CPAH) and COUPA SOFTWARE (NASDAQ:COUP) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Earnings & Valuation

This table compares CounterPath Corporation and COUPA SOFTWARE’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CounterPath Corporation $10.69 million 1.35 -$2.84 million ($0.66) -4.41
COUPA SOFTWARE $159.15 million 10.71 -$33.50 million ($0.95) -33.46

CounterPath Corporation has higher revenue, but lower earnings than COUPA SOFTWARE. COUPA SOFTWARE is trading at a lower price-to-earnings ratio than CounterPath Corporation, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

5.6% of CounterPath Corporation shares are held by institutional investors. Comparatively, 63.6% of COUPA SOFTWARE shares are held by institutional investors. 38.3% of CounterPath Corporation shares are held by company insiders. Comparatively, 32.1% of COUPA SOFTWARE shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares CounterPath Corporation and COUPA SOFTWARE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CounterPath Corporation -30.14% -34.00% -22.56%
COUPA SOFTWARE -24.00% -19.01% -11.91%

Analyst Recommendations

This is a breakdown of current ratings and target prices for CounterPath Corporation and COUPA SOFTWARE, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CounterPath Corporation 0 0 0 0 N/A
COUPA SOFTWARE 0 4 7 0 2.64

COUPA SOFTWARE has a consensus target price of $36.09, indicating a potential upside of 13.53%. Given COUPA SOFTWARE’s higher possible upside, analysts clearly believe COUPA SOFTWARE is more favorable than CounterPath Corporation.

Summary

COUPA SOFTWARE beats CounterPath Corporation on 8 of the 11 factors compared between the two stocks.

About CounterPath Corporation

CounterPath Corporation designs, develops and sells software and services that enable enterprises and telecommunication service providers to deliver unified communications (UC) services, including voice, video, messaging and collaboration functionality, over their Internet Protocol (IP)-based networks. The Company’s solutions range from software products to cloud-based services. Its software products include applications for smartphones, tablets and desktop computers, a Software Development Kit (SDK) for software developers seeking to add voice, video and messaging capabilities to their existing applications, and server-based software solutions for configuring, managing and supporting softphones and for deploying messaging and collaboration services. These software products are also available to customers in the form of cloud-based hosted services. The Company is focused on selling its software products to enterprises, telecommunication service providers and channel partners.

About COUPA SOFTWARE

Coupa Software Incorporated is a United States-based company, which provides a unified, cloud-based spend management platform that connects organizations with suppliers globally. The Company offers spend management cloud applications, which are pre-integrated. The platform offers consumerized financial applications. Its spend management suite includes procurement, invoicing, expenses, sourcing, inventory, contract lifecycle management, budgeting, analytics, open business network, supplier information management and storefront. The platform offers features, such as procure-to-pay solution; online invoice management, and inventory management and tracking software system. Its solutions for business needs include financial compliance and mobile productivity. The Company’s solutions for enterprise resource planning (ERP) include Oracle and NetSuite. The Company offers solutions for industries, including financial, healthcare, oil and gas, retail, technology, and food and beverage.

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