Crexendo (NASDAQ:CXDO) versus Square Enix (OTCMKTS:SQNXF) Head-To-Head Review

Crexendo (NASDAQ:CXDO) and Square Enix (OTCMKTS:SQNXF) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

9.5% of Crexendo shares are held by institutional investors. 56.2% of Crexendo shares are held 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.

Profitability

This table compares Crexendo and Square Enix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crexendo	4.75%	11.33%	9.14%
Square Enix	5.92%	5.88%	4.72%

Earnings and Valuation

This table compares Crexendo and Square Enix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crexendo	$60.84 million	3.14	$1.68 million	$0.10	63.30
Square Enix	$2.13 billion	3.68	$161.13 million	$0.34	63.97

Square Enix has higher revenue and earnings than Crexendo. Crexendo is trading at a lower price-to-earnings ratio than Square Enix, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Crexendo and Square Enix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crexendo	0	1	5	0	2.83
Square Enix	2	0	0	0	1.00

Crexendo presently has a consensus price target of $8.60, indicating a potential upside of 35.86%. Given Crexendo’s stronger consensus rating and higher possible upside, research analysts clearly believe Crexendo is more favorable than Square Enix.

Volatility & Risk

Crexendo has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Square Enix has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Summary

Crexendo beats Square Enix on 8 of the 14 factors compared between the two stocks.

About Crexendo

Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.

About Square Enix

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.