Endurance International Group (NASDAQ: EIGI) and USA Technologies (NASDAQ:USAT) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Volatility and Risk
Endurance International Group has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, USA Technologies has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.
This is a breakdown of recent recommendations for Endurance International Group and USA Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Endurance International Group||2||2||1||0||1.80|
Endurance International Group currently has a consensus target price of $8.70, indicating a potential upside of 8.75%. USA Technologies has a consensus target price of $12.00, indicating a potential upside of 29.03%. Given USA Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe USA Technologies is more favorable than Endurance International Group.
This table compares Endurance International Group and USA Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Endurance International Group||-12.74%||-161.36%||-5.51%|
Institutional and Insider Ownership
86.4% of Endurance International Group shares are owned by institutional investors. Comparatively, 51.2% of USA Technologies shares are owned by institutional investors. 58.2% of Endurance International Group shares are owned by insiders. Comparatively, 4.4% of USA Technologies 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.
Earnings and Valuation
This table compares Endurance International Group and USA Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Endurance International Group||$1.11 billion||1.03||-$72.83 million||($1.10)||-7.27|
|USA Technologies||$104.09 million||4.79||-$1.85 million||$0.01||930.93|
USA Technologies has lower revenue, but higher earnings than Endurance International Group. Endurance International Group is trading at a lower price-to-earnings ratio than USA Technologies, indicating that it is currently the more affordable of the two stocks.
USA Technologies beats Endurance International Group on 10 of the 14 factors compared between the two stocks.
Endurance International Group Company Profile
Endurance International Group Holdings, Inc. (Endurance) is a provider of cloud-based platform solutions designed to help small and medium-sized businesses (SMBs) succeed online. The Company operates through two segments: Web Presence and Email Marketing. The Company’s Web presence segment consists of Web hosting, domains and the related products and services. Its e-mail marketing segment consists of the products and services offered by Constant Contact, principally e-mail marketing, including event marketing, survey tools and SinglePlatform. The Company’s products focuses on Web hosting and other Web presence solutions, such as domains, and it also offers security, site backup, domains, search engine optimization (SEO) and search engine marketing (SEM), Google Adwords, mobile solutions, social media enablement, Website analytics, e-mail marketing and productivity and e-commerce tools, among others. It conducts operations in the United States, Brazil, India, and the Netherlands.
USA Technologies Company Profile
USA Technologies, Inc. provides technology-enabled solutions and value-added services that facilitate electronic payment transactions within the unattended point of sale (POS) market. The Company is a provider in the small ticket, beverage and food vending industry and is also engaged in offering solutions and services to other unattended market segments, such as amusement, commercial laundry, kiosk and others. It has designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services, which include the ability to remotely monitor, control and report on the results of distributed assets containing its electronic payment solutions. The Company derives its revenues from license and transaction fees resulting from connections to, as well as services provided by, its ePort Connect service.
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