Opower (NYSE: OPWR) and Finjan (NASDAQ:FNJN) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Profitability

This table compares Opower and Finjan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opower -30.39% -59.02% -26.51%
Finjan 37.53% 100.25% 37.40%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Opower and Finjan, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opower 0 0 0 0 N/A
Finjan 0 0 1 0 3.00

Finjan has a consensus target price of $4.00, suggesting a potential upside of 65.98%. Given Finjan’s higher possible upside, analysts plainly believe Finjan is more favorable than Opower.

Insider & Institutional Ownership

34.1% of Finjan shares are owned by institutional investors. 9.6% of Finjan shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Opower and Finjan’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opower N/A N/A N/A ($0.87) -11.83
Finjan $18.39 million 3.63 $350,000.00 $0.41 5.88

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

Summary

Finjan beats Opower on 9 of the 9 factors compared between the two stocks.

Opower Company Profile

Opower, Inc. (Opower) is a provider of cloud-based software to the utility industry. The Company’s software solutions deliver key customer-facing applications that reduce energy demand and provide customer care. The Company’s software analyzes energy data and presents insights that motivate reductions in energy consumption. Its integrated solutions include Demand-Side Management (DSM), which include energy efficiency and demand response, and Customer Care, which include digital engagement and bill advisor. The key components of its energy efficiency solution include home energy reports, smart meter-enabled e-mails and marketplace suite. The key components of its demand response solution include peak day alerts and peak day feedback reports. Opower’s digital engagement solutions include NextWeb platform, outbound communications, points and rewards, and rates engine. The Key components of its Bill Advisor solution include customer service interface and proactive alerts.

Finjan Company Profile

Finjan Holdings, Inc., through its subsidiaries, operates as a cybersecurity company, provides intellectual property licensing and enforcement services. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The company’s technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also provides investments in cybersecurity technologies and intellectual property; offers cyber risk and cyber security advisory services; and develops mobile security applications. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.

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