Analyzing eGain (NASDAQ:EGAN) & Bumble (NASDAQ:BMBL)

eGain (NASDAQ:EGAN) and Bumble (NASDAQ:BMBL) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for eGain and Bumble, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eGain	0	1	1	0	2.50
Bumble	0	5	11	0	2.69

eGain currently has a consensus target price of $7.00, suggesting a potential downside of 3.18%. Bumble has a consensus target price of $20.96, suggesting a potential upside of 42.48%. Given Bumble’s stronger consensus rating and higher probable upside, analysts plainly believe Bumble is more favorable than eGain.

Volatility and Risk

eGain has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Bumble has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.

Valuation & Earnings

This table compares eGain and Bumble’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eGain	$97.42 million	2.34	$2.11 million	$0.15	48.20
Bumble	$903.50 million	2.23	-$79.75 million	($0.69)	-21.32

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

Profitability

This table compares eGain and Bumble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eGain	4.85%	7.58%	3.83%
Bumble	-8.70%	1.78%	1.18%

Insider and Institutional Ownership

59.7% of eGain shares are owned by institutional investors. Comparatively, 94.9% of Bumble shares are owned by institutional investors. 34.3% of eGain shares are owned by company insiders. Comparatively, 7.6% of Bumble shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

eGain beats Bumble on 8 of the 14 factors compared between the two stocks.

About eGain

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 eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed 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 Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates two apps, Bumble and Badoo with approximately 40 million users on monthly basis, as well as Fruitz, an online dating app. Bumble Inc. was founded in 2014 in and is headquartered in Austin, Texas.