Comparing CrowdGather (OTCMKTS:CRWG) and Yelp (NYSE:YELP)

Yelp (NYSE:YELP) and CrowdGather (OTCMKTS:CRWG) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Yelp and CrowdGather, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yelp	2	4	1	0	1.86
CrowdGather	0	0	0	0	0.00

Yelp currently has a consensus target price of $31.29, suggesting a potential upside of 11.54%. Given Yelp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Yelp is more favorable than CrowdGather.

Profitability

This table compares Yelp and CrowdGather’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yelp	10.23%	20.33%	15.23%
CrowdGather	N/A	N/A	N/A

Volatility and Risk

Yelp has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, CrowdGather has a beta of 14.04, suggesting that its stock price is 1,304% more volatile than the S&P 500.

Institutional & Insider Ownership

90.1% of Yelp shares are held by institutional investors. 7.4% of Yelp shares are held by company insiders. Comparatively, 36.4% of CrowdGather shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Yelp and CrowdGather”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yelp	$1.41 billion	1.22	$132.85 million	$2.26	12.41
CrowdGather	N/A	N/A	N/A	N/A	N/A

Yelp has higher revenue and earnings than CrowdGather.

Summary

Yelp beats CrowdGather on 8 of the 10 factors compared between the two stocks.

About Yelp

Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click advertising and multi-location Ad products, as well as enables businesses to deliver targeted advertising to large and high-intent audience; and business listing page products. The company also offers other services comprising Yelp Guest Manager, a subscription-based suite of front-of-house management tools for restaurants, nightlife and certain other venues, which include online reservations, a waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as through hostless kiosks, and seating and server rotation management tools; Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content; and Yelp Fusion, which offers free access to various basic information through publicly available APIs, and paid access to content and data for consumer-facing enterprise use. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website and business app, as well as non-advertising partner arrangements. It has partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery. The company was incorporated in 2004 and is based in San Francisco, California.

About CrowdGather

CrowdGather, Inc., a social networking Internet company, develops and hosts forum based Websites primarily in the United States. It monetizes a network of online forums and message boards designed to engage, provide information to, and build community around users. The company's forum community connects a network of people sharing their questions, expertise, and experiences. It also provides targeted advertising and marketing services for online customers. The company's portfolio includes approximately 350 domain names and 70 Web properties at various stages of development. CrowdGather, Inc. is headquartered in Calabasas, California.