Sogou (SOGO) & Callidus Software (CALD) Critical Contrast

Sogou (NASDAQ: CALD) and Callidus Software (NASDAQ:CALD) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Sogou and Callidus Software, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sogou 1 1 1 0 2.00
Callidus Software 0 9 2 0 2.18

Sogou currently has a consensus target price of $12.83, indicating a potential upside of 45.83%. Callidus Software has a consensus target price of $33.10, indicating a potential downside of 8.06%. Given Sogou’s higher possible upside, equities research analysts plainly believe Sogou is more favorable than Callidus Software.

Profitability

This table compares Sogou and Callidus Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sogou N/A N/A N/A
Callidus Software -8.01% -4.16% -2.42%

Institutional & Insider Ownership

4.8% of Sogou shares are held by institutional investors. Comparatively, 94.5% of Callidus Software shares are held by institutional investors. 1.6% of Callidus Software shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Sogou and Callidus Software’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sogou $908.36 million 3.85 $82.20 million $0.29 30.34
Callidus Software $253.09 million 9.45 -$20.27 million ($0.19) -189.47

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

Summary

Sogou beats Callidus Software on 8 of the 13 factors compared between the two stocks.

About Sogou

Sogou Inc. provides search and search-related services in the People's Republic of China. The company provides Sogou Search, a search engine; and Sogou Input Method, a Chinese language input software for mobile and PC MAUs. It also offers search and search-related advertising services; Internet value-added services related to the operation of Web games and mobile games developed by third parties; and online reading services, as well as other products and services, including smart hardware products. The company was incorporated in 2005 and is based in Beijing, the People's Republic of China. Sogou Inc. is a subsidiary of Sohu.com Inc.

About Callidus Software

Callidus Software Inc. provides cloud-based sales, marketing, learning, and customer experience solutions worldwide. The company enables its customers to sell Lead to Money suite of solutions that identify leads, train personnel, implement territory and quota plans, enable sales forces, automate configuration pricing and quoting, manage contracts, streamline sales compensation, capture customer feedback, and provide predictive analytics for competitive advantage. It offers Lead to Money suite and technology solutions, which include sales performance management solutions, such as Commissions, Territory and Quota, and SalesMotivate; Sales Execution solutions, including Configure Price Quote, Contract Lifecycle Management, Datahug, and Revsym; and Customer Engagement solutions comprising Marketing Automation, Voice of the Customer, and ServiceMotivate. The company also provides Sales Enablement and Learning solutions consisting of Enablement, Litmos Learning Management System, Litmos Heroes, and Coaching; Technology solutions, including Database Management System, Thunderbridge Advanced Analytics, Thunderbridge Augmented Intelligence, Workflow, and Connect Enterprise; and Vertical Solutions, such as Producer Pro, Telco Dealer Pro, Incentive Compensation Management, and DS Pro. In addition, it offers a range of services comprising professional, business process outsourcing, maintenance and technical support, and education services Callidus Software Inc. was founded in 1996 and is headquartered in Dublin, California.

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