Head-To-Head Survey: Crexendo (NASDAQ:CXDO) and Sohu.com (NASDAQ:SOHU)

Sohu.com (NASDAQ:SOHU) and Crexendo (NASDAQ:CXDO) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Sohu.com has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares Sohu.com and Crexendo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sohu.com	$584.33 million	0.86	$394.10 million	$14.08	1.19
Crexendo	$60.84 million	3.01	$1.68 million	$0.15	39.67

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

Analyst Ratings

This is a summary of current recommendations for Sohu.com and Crexendo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sohu.com	0	1	2	0	2.67
Crexendo	0	1	5	0	2.83

Sohu.com presently has a consensus target price of $20.00, suggesting a potential upside of 19.69%. Crexendo has a consensus target price of $9.08, suggesting a potential upside of 52.66%. Given Crexendo’s stronger consensus rating and higher possible upside, analysts plainly believe Crexendo is more favorable than Sohu.com.

Profitability

This table compares Sohu.com and Crexendo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sohu.com	67.44%	20.67%	13.84%
Crexendo	6.58%	13.09%	10.59%

Insider & Institutional Ownership

33.0% of Sohu.com shares are held by institutional investors. Comparatively, 9.5% of Crexendo shares are held by institutional investors. 21.1% of Sohu.com shares are held by insiders. Comparatively, 47.2% of Crexendo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

About Sohu.com

Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.

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.