Cloud Companies to Buy: Cornerstone OnDemand (CSOD)
Compared to other cloud companies, Cornerstone OnDemand (CSOD) often gets overlooked. But the company is actually another pioneer — and has built a solid business in the category for talent management, such helps with recruiting, hiring and onboarding.
True, CSOD has competition. But most of the players are mega companies like Oracle (ORCL) and IBM (IBM), which are far from nimble. Besides, the company has the advantage of being solely focused on talent management and its platform is available for companies of all sizes.
And yes, CSOD has been growing at a nice pace. In the latest quarter, revenues jumped by 52% to $57.4 million. But the strength should continue for some time. Consider that the company believes its global market opportunity is about 400 million seats. As of now, the base for the company is a mere 14.5 million.
CSOD stock is currently trading at a fair valuation for cloud companies, with a price-to-sales ratio of 9.