Contrasting FalconStor Software (OTCMKTS:FALCD) & eGain (OTCMKTS:EGAN)

FalconStor Software (OTCMKTS:FALCD) and eGain (NASDAQ:EGAN) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Insider & Institutional Ownership

0.2% of FalconStor Software shares are owned by institutional investors. Comparatively, 76.2% of eGain shares are owned by institutional investors. 61.5% of FalconStor Software shares are owned by insiders. Comparatively, 35.2% of eGain shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

FalconStor Software has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, eGain has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for FalconStor Software and eGain, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FalconStor Software 0 0 0 0 N/A
eGain 0 1 2 0 2.67

eGain has a consensus target price of $11.33, suggesting a potential upside of 45.77%.

Profitability

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

Net Margins Return on Equity Return on Assets
FalconStor Software -9.85% -0.46% -2.07%
eGain 6.96% 28.68% 7.50%

Earnings and Valuation

This table compares FalconStor Software and eGain’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FalconStor Software $17.84 million 0.00 -$910,000.00 N/A N/A
eGain $67.23 million 3.53 $4.17 million $0.16 48.59

eGain has higher revenue and earnings than FalconStor Software.

Summary

eGain beats FalconStor Software on 7 of the 9 factors compared between the two stocks.

About FalconStor Software

FalconStor Software, Inc., a storage software company, develops, manufactures, and sells data migration, business continuity, disaster recovery, optimized backup, de-duplication solutions, and other related maintenance, implementation, and engineering services worldwide. It offers FalconStor Data Mastery Platform, a software-defined platform that provides migration, continuity, protection/recovery, and optimization for storage environment through a single management interface; FalconStor network storage server for migration, storage virtualization, provisioning, and management; and FalconStor continuous data protector for bootable snapshots, zero-impact backup, and local and remote disaster recovery. The company also provides FalconStor optimized backup and deduplication solution for optimized backup, archive to tape, block and file based deduplication, and storage capacity optimization. In addition, it offers maintenance, implementation, and engineering services. The company sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. FalconStor Software, Inc. was incorporated in 1994 and is headquartered in Austin, Texas.

About eGain

eGain Corporation operates as a software-as-a service provider of customer engagement solutions in the United States, the United Kingdom, India, and internationally. It provides eGain solution, a unified cloud software solution to automate, augment, and orchestrate customer engagement, including digital-first, Omni channel desktop, artificial intelligence (AI) and knowledge, and analytics and machine learning applications, as well as platform APIs and pre-built third-party connectors. The company's suite includes various applications for digital interaction, knowledge management, and AI-based process guidance. It also provides integrated analytics for contact centers and digital properties to measure, manage, and optimize resources. In addition, the company offers subscription services and customer support services; consulting services, including implementation, custom solution development, and systems integration services; and education services, such as training programs, as well as online tutorial modules. It serves customers in various industry sectors, including the healthcare, retail, telecommunications, financial services, insurance, outsourced services, technology, utilities, government, manufacturing, and consumer electronics industries. The company was founded in 1997 and is headquartered in Sunnyvale, California.

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