eGain (NASDAQ:EGAN – Get Free Report) and ON24 (NYSE:ONTF – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.
Analyst Recommendations
This is a summary of current ratings and recommmendations for eGain and ON24, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
eGain | 0 | 1 | 1 | 0 | 2.50 |
ON24 | 0 | 3 | 0 | 0 | 2.00 |
eGain currently has a consensus price target of $9.50, suggesting a potential upside of 83.40%. ON24 has a consensus price target of $8.00, suggesting a potential upside of 35.59%. Given eGain’s stronger consensus rating and higher possible upside, equities analysts plainly believe eGain is more favorable than ON24.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
eGain | $92.80 million | 1.59 | $7.78 million | $0.25 | 20.72 |
ON24 | $163.71 million | 1.50 | -$51.79 million | ($1.03) | -5.73 |
eGain has higher earnings, but lower revenue than ON24. ON24 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 ON24’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
eGain | 8.38% | 12.28% | 6.27% |
ON24 | -28.14% | -21.81% | -14.31% |
Risk and Volatility
eGain has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, ON24 has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Insider & Institutional Ownership
53.9% of eGain shares are owned by institutional investors. Comparatively, 83.9% of ON24 shares are owned by institutional investors. 34.3% of eGain shares are owned by insiders. Comparatively, 32.3% of ON24 shares are owned by 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 ON24 on 11 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 ON24
ON24, Inc. provides a cloud-based intelligent engagement platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide. The company provides ON24 Elite, for live and interactive webinar experience; ON24 Breakouts, for live breakout room experience that facilitates networking, collaboration, and interactivity between users; ON24 Forums, for live and interactive experience, which facilitates video-to-video interaction between presenters and audiences; ON24 Go Live, for live and interactive video event experience that enables presenters and attendees to engage face-to-face in real-time; and ON24 Virtual Confrence, for live and large scale managed virtual event experience. It also offers ON24 Engagement Hub, for always-on multimedia content experience; ON24 Target, for personalized and curated landing page experience; ON24 Intelligence, for analytics backbone that captures first-person data to power the insights, benchmarking, reporting, and artificial intelligence and machine learning engine; ON24 AI-powered ACE, for enabling hyper-personalization at scale across ON24 experiences; ON24 Connect, for ecosystem of third-party application integrations; and ON24 Services and Platform Support, which provides a portfolio of professional services that provide consulting and support for product and platform adoption. In addition, the company offers consulting services, such as experience management, monitoring and production, implementation, and other support services. It sells its products through direct sales. The company serves technology, financial services, healthcare, industrial and manufacturing, professional services, and business-to-business information service companies. The company was formerly known as NewsDirect, Inc. and changed its name to ON24, Inc. in December 1998. ON24, Inc. was incorporated in 1998 and is headquartered in San Francisco, California.
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