HubSpot (NYSE:HUBS) versus eGain (NASDAQ:EGAN) Head-To-Head Survey

HubSpot (NYSE:HUBS) and eGain (NASDAQ:EGAN) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares HubSpot and eGain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HubSpot	3.04%	5.66%	3.04%
eGain	41.68%	12.56%	7.48%

Institutional and Insider Ownership

90.4% of HubSpot shares are owned by institutional investors. Comparatively, 53.9% of eGain shares are owned by institutional investors. 3.7% of HubSpot shares are owned by insiders. Comparatively, 38.7% of eGain shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

HubSpot has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, eGain has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for HubSpot and eGain, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HubSpot	2	7	21	0	2.63
eGain	0	3	1	0	2.25

HubSpot presently has a consensus target price of $311.00, indicating a potential upside of 76.66%. eGain has a consensus target price of $15.25, indicating a potential upside of 103.06%. Given eGain’s higher possible upside, analysts clearly believe eGain is more favorable than HubSpot.

Earnings and Valuation

This table compares HubSpot and eGain”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HubSpot	$3.13 billion	2.88	$45.91 million	$1.91	92.17
eGain	$88.43 million	2.33	$32.25 million	$1.38	5.44

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

Summary

HubSpot beats eGain on 9 of the 14 factors compared between the two stocks.

About HubSpot

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.

About eGain

eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.