Head to Head Analysis: Crexendo (NASDAQ:CXDO) and authID (NASDAQ:AUID)

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

Volatility and Risk

authID has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

8.8% of authID shares are owned by institutional investors. Comparatively, 9.5% of Crexendo shares are owned by institutional investors. 17.4% of authID shares are owned by company insiders. Comparatively, 47.2% of Crexendo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for authID and Crexendo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
authID	0	0	0	0	0.00
Crexendo	0	1	3	0	2.75

Crexendo has a consensus target price of $10.50, indicating a potential upside of 75.50%. Given Crexendo’s stronger consensus rating and higher probable upside, analysts plainly believe Crexendo is more favorable than authID.

Earnings and Valuation

This table compares authID and Crexendo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
authID	$2.04 million	3.56	-$17.93 million	($1.23)	-0.35
Crexendo	$68.17 million	2.92	$5.07 million	$0.14	42.74

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
authID	-934.06%	-297.48%	-213.83%
Crexendo	5.31%	14.34%	11.44%

Summary

Crexendo beats authID on 12 of the 14 factors compared between the two stocks.

About authID

authID Inc. provides secure, biometric, identity verification, and strong passwordless and biometric authentication for consumer and workforce applications worldwide. The company offers solutions through its Verified platform to enable their users to easily verify and authenticate their identity through a mobile device or desktop. It provides Biometric Identity Verification, which establishes the trusted identity of users based on a variety of ground truth sources, including chip-based electronic machine-readable travel documents, national IDs, and driver's licenses; Human Factor Authentication that delivers trusted FIDO2 strong authentication for device-based passwordless login and transaction authentication that is tied to a trusted identity; Cloud-Based Biometric Multi-Factor Authentication, which provides any bank, enterprise, or government department a secure and convenient application for identity verification and transaction consent as part of any type of electronic transaction; and Identity – Portal that enables enterprises to get started with its identity products without any integration. The company also offers SEARCH, a biometric matching software for desktop fingerprint capture and image processing. The company was formerly known as Ipsidy Inc. and changed its name to authID Inc. authID Inc. was founded in 2009 and is headquartered in Denver, Colorado.

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.