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

Profitability

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

Net Margins Return on Equity Return on Assets
Callidus Software -8.01% -4.16% -2.42%
Syntel 18.40% -304.22% 38.34%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Callidus Software and Syntel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Callidus Software 0 9 2 0 2.18
Syntel 1 10 1 0 2.00

Callidus Software currently has a consensus target price of $33.10, indicating a potential downside of 8.06%. Syntel has a consensus target price of $23.71, indicating a potential downside of 18.20%. Given Callidus Software’s stronger consensus rating and higher probable upside, analysts plainly believe Callidus Software is more favorable than Syntel.

Institutional & Insider Ownership

94.5% of Callidus Software shares are owned by institutional investors. Comparatively, 40.6% of Syntel shares are owned by institutional investors. 1.6% of Callidus Software shares are owned by company insiders. Comparatively, 61.1% of Syntel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Callidus Software and Syntel’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Callidus Software $253.09 million 9.45 -$20.27 million ($0.19) -189.47
Syntel $923.83 million 2.60 $166.26 million $2.02 14.35

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

Risk & Volatility

Callidus Software has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Syntel has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

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.

About Syntel

Syntel, Inc. provides digital transformation, information technology (IT), and knowledge process outsourcing (KPO) services worldwide. The company operates through Banking and Financial Services; Healthcare and Life Sciences; Insurance; Manufacturing; and Retail, Logistics, and Telecom segments. It provides end-to-end, integrated application, and infrastructure management services; develops software applications; and offers legacy modernization services, such as software analysis, language conversion, reverse engineering, database migration, code optimization, cloud onboarding and migration, ecosystem migration, testing, and management. The company also provides consulting, implementation, and management services for enterprise architecture, data warehousing, business intelligence, and enterprise application integration, as well as mobility, big data, analytics, and Internet of Things technologies. In addition, it offers KPO services that provide outsourced solutions for knowledge and business processes. The company offers its products to various companies in the banking and financial services, healthcare and life sciences, insurance, manufacturing, retail, logistics, and telecom industries. Syntel, Inc. was founded in 1980 and is headquartered in Troy, Michigan.

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