Comparing Duck Creek Technologies (NASDAQ:DCT) & eGain (NASDAQ:EGAN)

eGain (NASDAQ:EGANGet Rating) and Duck Creek Technologies (NASDAQ:DCTGet Rating) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for eGain and Duck Creek Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eGain 0 0 2 0 3.00
Duck Creek Technologies 0 2 7 0 2.78

eGain presently has a consensus target price of $12.00, indicating a potential upside of 14.72%. Duck Creek Technologies has a consensus target price of $33.00, indicating a potential upside of 102.58%. Given Duck Creek Technologies’ higher possible upside, analysts clearly believe Duck Creek Technologies is more favorable than eGain.

Risk and Volatility

eGain has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Duck Creek Technologies has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Profitability

This table compares eGain and Duck Creek Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
eGain 3.59% 6.38% 2.84%
Duck Creek Technologies -2.11% 1.14% 1.01%

Insider and Institutional Ownership

54.0% of eGain shares are held by institutional investors. Comparatively, 71.8% of Duck Creek Technologies shares are held by institutional investors. 33.3% of eGain shares are held by insiders. Comparatively, 2.9% of Duck Creek Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares eGain and Duck Creek Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
eGain $78.29 million 4.21 $6.96 million $0.09 116.24
Duck Creek Technologies $260.35 million 8.29 -$16.93 million ($0.04) -407.25

eGain has higher earnings, but lower revenue than Duck Creek Technologies. Duck Creek Technologies is trading at a lower price-to-earnings ratio than eGain, indicating that it is currently the more affordable of the two stocks.

Summary

eGain beats Duck Creek Technologies on 9 of the 14 factors compared between the two stocks.

About eGain (Get Rating)

eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides unified cloud software solutions to automate, augment, and orchestrate customer engagement. It also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting, implementation, and training services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.

About Duck Creek Technologies (Get Rating)

Duck Creek Technologies, Inc. provides software-as-a-service core systems to the property and casualty insurance industry in the United States and internationally. The company provides Duck Creek Policy, a solution that enables insurers to develop and launch new insurance products and manage various aspects of policy administration ranging from product definition to quoting, binding, and servicing; Duck Creek Billing that provides payment and invoicing capabilities, such as billing and collections, commission processing, disbursement management, and general ledger capabilities for insurance lines and bill types; and Duck Creek Claims that supports entire claims lifecycle from first notice of loss through investigation, payments, negotiations, reporting, and closure. It also offers Duck Creek Rating that allows carriers to develop new rates and models and deliver quotes in real-time based on the complex rating algorithms; Duck Creek Insights, an insurance analytics solution that allows carriers to gather and analyze data from internal and external sources and facilitate analysis and reporting on a single system; Duck Creek Digital Engagement that offer digital interactions between property and casualty insurers and their agents, brokers, and policyholders; and Duck Creek Distribution Management that automates sales channel activities for agents and brokers, including producer onboarding, compliance, and compensation management. In addition, the company provides Duck Creek Reinsurance Management that automates financial and administrative functions; and Duck Creek Industry Content that provides pre-built content, including base business rules, product designs, rating algorithms, data capture screens, and workflows for insurance lines of business, such as commercial auto, inland marine, and workers compensation. It has a partnership with Shift Technologies, Inc. to implement AI fraud detection. The company was founded in 2016 and is based in Boston, Massachusetts.

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