GigaMedia (NASDAQ:GIGM – Get Free Report) and Crexendo (NASDAQ:CXDO – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Analyst Ratings
This is a summary of current ratings and target prices for GigaMedia and Crexendo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GigaMedia | 1 | 0 | 0 | 0 | 1.00 |
| Crexendo | 0 | 1 | 4 | 0 | 2.80 |
Crexendo has a consensus price target of $10.40, indicating a potential upside of 8.22%. Given Crexendo’s stronger consensus rating and higher probable upside, analysts clearly believe Crexendo is more favorable than GigaMedia.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GigaMedia | $3.47 million | 4.71 | -$1.55 million | ($0.15) | -9.87 |
| Crexendo | $68.17 million | 4.57 | $5.07 million | $0.15 | 64.07 |
Crexendo has higher revenue and earnings than GigaMedia. GigaMedia is trading at a lower price-to-earnings ratio than Crexendo, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
13.5% of GigaMedia shares are owned by institutional investors. Comparatively, 9.5% of Crexendo shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by company insiders. Comparatively, 47.2% of Crexendo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
GigaMedia has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.
Profitability
This table compares GigaMedia and Crexendo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GigaMedia | -50.86% | -4.52% | -4.24% |
| Crexendo | 6.15% | 13.84% | 11.21% |
Summary
Crexendo beats GigaMedia on 12 of the 14 factors compared between the two stocks.
About GigaMedia
GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.
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.
Receive News & Ratings for GigaMedia Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GigaMedia and related companies with MarketBeat.com's FREE daily email newsletter.
