Head-To-Head Comparison: Zvelo (OTCMKTS:ZVLO) & eGain (NASDAQ:EGAN)

Zvelo (OTCMKTS:ZVLO) and eGain (NASDAQ:EGAN) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Institutional & Insider Ownership

53.9% of eGain shares are owned by institutional investors. 5.1% of Zvelo shares are owned by company insiders. Comparatively, 37.7% of eGain shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Zvelo and eGain”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zvelo	N/A	N/A	N/A	N/A	N/A
eGain	$92.80 million	1.85	$7.78 million	$0.09	69.89

eGain has higher revenue and earnings than Zvelo.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Zvelo and eGain, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zvelo	0	0	0	0	0.00
eGain	0	1	1	0	2.50

eGain has a consensus target price of $8.50, indicating a potential upside of 35.14%. Given eGain’s stronger consensus rating and higher probable upside, analysts plainly believe eGain is more favorable than Zvelo.

Volatility & Risk

Zvelo has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, eGain has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zvelo	N/A	N/A	N/A
eGain	3.30%	5.24%	2.52%

Summary

eGain beats Zvelo on 10 of the 10 factors compared between the two stocks.

About Zvelo

zvelo, Inc. provides Website content and contextual categorization, and malicious and botnet detection products. It offers Web filtering, brand safety, semantic targeting, traffic quality analysis, contextual targeting, and ad fraud prevention solutions for network security and mobile service providers, and subscriber analytics. The company was formerly known as eSoft, Inc. and changed its name to zvelo, Inc. in September 2010. zvelo, Inc. was founded in 1984 and is headquartered in Greenwood Village, Colorado.

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.