eGain (NASDAQ: EGAN) is one of 186 public companies in the “IT Services & Consulting” industry, but how does it contrast to its competitors? We will compare eGain to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for eGain and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eGain 0 1 1 0 2.50
eGain Competitors 725 4646 7406 167 2.54

eGain currently has a consensus target price of $3.25, suggesting a potential downside of 7.14%. As a group, “IT Services & Consulting” companies have a potential upside of 2.17%. Given eGain’s competitors stronger consensus rating and higher probable upside, analysts clearly believe eGain has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares eGain and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
eGain $58.22 million -$6.02 million -23.33
eGain Competitors $2.81 billion $293.37 million 311.57

eGain’s competitors have higher revenue and earnings than eGain. eGain is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares eGain and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
eGain -7.20% N/A -10.58%
eGain Competitors -73.34% -271.26% -4.55%

Volatility and Risk

eGain has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, eGain’s competitors have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

48.3% of eGain shares are held by institutional investors. Comparatively, 61.5% of shares of all “IT Services & Consulting” companies are held by institutional investors. 39.0% of eGain shares are held by company insiders. Comparatively, 16.3% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

eGain competitors beat eGain on 9 of the 12 factors compared.

eGain Company Profile

eGain Corporation (eGain) provides cloud-based and on-site customer engagement software solutions. The Company optimizes service processes across the Web, social and phone channels. The Company’s solutions help business to consumer (B2C) businesses to operationalize digital customer engagement strategies. The Company is engaged in the development, license, implementation and support of customer service infrastructure software solutions. The Company offers eGain solution, which is designed for B2C businesses to do business with their customers. The Company offers eGain OpenCEH, which is an engagement hub platform. The eGain suite includes Mobile applications; Social applications; Web applications; Desktop applications; Management applications and analytics; Messaging applications; eGain OpenCEH, and eGain Connectors. It provides analytics capability to various contact centers for intra-day resource measurement and management, managing operational agility, and agent productivity.

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