Reviewing CDK Global Inc. (CDK)’s and Luxoft Holding Inc. (NYSE:LXFT)’s results

This is therefore a contrasting of the risk, institutional ownership, analyst recommendations, profitability, dividends, earnings and valuation in CDK Global Inc. (NASDAQ:CDK) and Luxoft Holding Inc. (NYSE:LXFT). The two are both Application Software companies that compete with one another.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CDK Global Inc. 2.29B 3.06 374.80M 2.75 17.48
Luxoft Holding Inc. 910.69M 2.17 51.37M 1.51 21.74

We can see in table 1 the earnings per share, top-line revenue and valuation of CDK Global Inc. and Luxoft Holding Inc. Luxoft Holding Inc. has lower revenue and earnings than CDK Global Inc. When company has lower price-to-earnings means it is more affordable than its counterpart currently. CDK Global Inc.’s current price-to-earnings ratio is lower than that of Luxoft Holding Inc., which means that it is the affordable of the two.

Profitability

Table 2 provides us the net margins, return on assets and return on equity of both businesses.

Net Margins Return on Equity Return on Assets
CDK Global Inc. 16.37% -139.1% 13.6%
Luxoft Holding Inc. 5.64% 10.9% 8.6%

Volatility & Risk

CDK Global Inc. has a beta of 0.76 and its 24.00% less volatile than S&P 500. Competitively, Luxoft Holding Inc.’s beta is 1.57 which is 57.00% more volatile than S&P 500.

Liquidity

CDK Global Inc.’s Current Ratio and Quick Ratio are 1.6 and 1.6 respectively. The Current Ratio and Quick Ratio of its competitor Luxoft Holding Inc. are 3.1 and 3 respectively. Luxoft Holding Inc. therefore has a better chance of paying off short and long-term obligations compared to CDK Global Inc.

Dividends

CDK Global Inc. pays out its dividends annually at $0.6 per share and 1.07% dividend yield. Luxoft Holding Inc. does not offer a dividend.

Analyst Ratings

The Ratings and Recommendations for CDK Global Inc. and Luxoft Holding Inc. are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
CDK Global Inc. 0 2 0 2.00
Luxoft Holding Inc. 0 3 3 2.50

The upside potential is 20.91% for CDK Global Inc. with consensus target price of $68. Luxoft Holding Inc. on the other hand boasts of a $52.2 consensus target price and a -10.59% potential downside. The data from earlier shows that analysts opinion suggest that CDK Global Inc. seems more appealing than Luxoft Holding Inc.

Institutional & Insider Ownership

Institutional investors owned 82.5% of CDK Global Inc. shares and 0% of Luxoft Holding Inc. shares. CDK Global Inc.’s share owned by insiders are 0.4%. Competitively, insiders own roughly 4.04% of Luxoft Holding Inc.’s shares.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
CDK Global Inc. -4.74% -9.33% -21.37% -26.24% -31.37% -32.65%
Luxoft Holding Inc. -0.61% -23.08% -29.42% -8.71% -37.37% -41.08%

For the past year CDK Global Inc. has stronger performance than Luxoft Holding Inc.

Summary

CDK Global Inc. beats Luxoft Holding Inc. on 12 of the 16 factors.

CDK Global, Inc. provides integrated information technology and digital marketing solutions to the automotive retail and other industries worldwide. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. It offers technology-based solutions, including automotive Website platforms; and advertising solutions comprising the management of digital advertising spend for original equipment manufacturers and automotive retailers. The companyÂ’s solutions automate and integrate various parts of the dealership and buying process from targeted digital advertising and marketing campaigns to the sale, financing, insuring, parts supply, repair, and maintenance of vehicles. It provides solutions to dealers serving approximately 28,000 retail locations and automotive manufacturers. CDK Global, Inc. is headquartered in Hoffman Estates, Illinois.

Luxoft Holding, Inc., together with its subsidiaries, provides software development services and IT solutions to multinational corporations primarily in Europe and the United States. It offers application software development, software architecture design, performance engineering, optimization and testing, process consulting, and software quality assurance services; functional specification and mock-up, product design, engineering, automated testing, maintenance, support, and performance engineering services; and IT strategy, software engineering process, and data security consulting services. The companyÂ’s products and platforms include Teora, a suite of developer tools designed to enable automotive human machine interface (HMI) developers build the logic of their user interface; Populus, a tool chain for HMI design and development, and the deployment of automotive user interfaces for distributed embedded systems; and AllView, a user-experience demonstrator that links instrument cluster, head unit, head-up display, and mobile devices. It serves financial services, automotive and transport, travel and aviation, technology, telecom, healthcare and pharmaceutical, energy, and other industries. The company was founded in 2000 and is headquartered in Zug, Switzerland.