Splunk (SPLK) versus eFuture (EFUT) Critical Review

Splunk (NASDAQ: SPLK) and eFuture (NASDAQ:EFUT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Insider and Institutional Ownership

1.6% of eFuture shares are owned by institutional investors. 1.4% of Splunk shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Splunk and eFuture’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Splunk -32.72% -72.06% -32.67%
eFuture -22.90% -20.16% -11.94%

Valuation and Earnings

This table compares Splunk and eFuture’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Splunk $949.96 million 13.75 -$355.18 million ($4.34) -21.28
eFuture N/A N/A N/A N/A N/A

eFuture has lower revenue, but higher earnings than Splunk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Splunk and eFuture, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Splunk 0 5 27 0 2.84
eFuture 0 0 0 0 N/A

Splunk currently has a consensus target price of $84.25, indicating a potential downside of 8.77%.

Summary

eFuture beats Splunk on 4 of the 7 factors compared between the two stocks.

Splunk Company Profile

Splunk Inc. (Splunk) is engaged in the development and marketing of software solutions. The Company’s offerings enable users to collect, index, search, explore, monitor and analyze data. Its offerings address diverse data sets that are referred to as big data and are specifically used for machine data. Machine data is produced by various software application and electronic devices in an organization and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Its products help users in various roles, including information technology (IT), security and business professionals, to analyze their machine data and achieve real-time visibility into and intelligence about their organization’s operations. In addition, the Company offers user behavioral analytics to help detect, respond to and mitigate advanced, hidden and insider threats. The Company offers Splunk Enterprise, which is a machine data platform.

eFuture Company Profile

eFuture Holding Inc., formerly eFuture Information Technology Inc., is a holding company. The Company is a software and solution provider and a mobile business enabler to China’s retail and consumer goods industries. All of the Company’s operations are conducted through its Chinese subsidiary, eFuture (Beijing) Royalstone Information Technology Inc. (eFuture Beijing). The Company caters to manufacturers, distributors, resellers, logistics companies and retailers. Its software professional service includes delivery services, recurring maintenance services and offers support service system. The Company’s software solutions are specifically designed to optimize demand processes from factory to consumer, and to address supply chain management (SCM), business processes, decision support, inventory optimization, collaborative planning and forecasting requirements. Its Omni-channel solutions business includes a series of omni-channel cloud services. Its Omni-channel solutions offer myStore.

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