Analyzing Enfusion (NYSE:ENFN) and Duos Technologies Group (NASDAQ:DUOT)

Duos Technologies Group (NASDAQ:DUOT) and Enfusion (NYSE:ENFN) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Duos Technologies Group and Enfusion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duos Technologies Group	0	0	2	0	3.00
Enfusion	0	2	1	0	2.33

Duos Technologies Group currently has a consensus price target of $11.50, suggesting a potential upside of 52.32%. Enfusion has a consensus price target of $12.25, suggesting a potential upside of 12.91%. Given Duos Technologies Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Duos Technologies Group is more favorable than Enfusion.

Insider and Institutional Ownership

42.6% of Duos Technologies Group shares are owned by institutional investors. Comparatively, 81.1% of Enfusion shares are owned by institutional investors. 11.6% of Duos Technologies Group shares are owned by company insiders. Comparatively, 36.4% of Enfusion 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.

Earnings and Valuation

This table compares Duos Technologies Group and Enfusion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duos Technologies Group	$7.28 million	12.08	-$11.24 million	($1.20)	-6.29
Enfusion	$201.61 million	6.94	$6.03 million	$0.03	361.63

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

Volatility & Risk

Duos Technologies Group has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Enfusion has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Profitability

This table compares Duos Technologies Group and Enfusion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duos Technologies Group	-143.17%	-271.06%	-64.01%
Enfusion	1.70%	6.67%	4.86%

Summary

Enfusion beats Duos Technologies Group on 9 of the 14 factors compared between the two stocks.

About Duos Technologies Group

Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. The company provides solutions, such as Centraco, an enterprise information management software platform that consolidates data and events from multiple sources into a unified and distributive user interface; and truevue360, an integrated platform to develop and deploy artificial intelligence algorithms, including machine learning, computer vision, object detection, and deep neural network-based processing for real-time applications. Its proprietary applications include Railcar Inspection Portal that provides freight and transit railroad customers and select government agencies the ability to conduct fully automated railcar inspections of trains while they are moving at full speed. It also develops Automated Logistics Information System, which automates gatehouse operations, as well as develops solutions for rail, trucking, aviation, and other vehicle-based processes. In addition, the company provides consulting services, including consulting and auditing; software licensing with optional hardware sales; customer service training; and maintenance support. The company operates its services under the duostech brand. The company is headquartered in Jacksonville, Florida.

About Enfusion

Enfusion, Inc. provides software-as-a-service solutions for investment management industry in the United States, Europe, the Middle East, Africa, and the Asia Pacific. The company provides Portfolio Management System, which generates a real-time investment book of record that consists of valuation and risk tools, which allows users to analyze aggregated or decomposed portfolio data for chief investment officers (CIOs) and portfolio managers; and Order and Execution Management System that enables portfolio managers, traders, compliance teams, and analysts to electronically communicate trade orders for a variety of asset classes, manage trade orders, and systemically enforce trading regulations and internal guidelines. It also offers Accounting/General Ledger System, a real-time accounting book of record for chief financial officers, chief operating officers, accountants, and operations teams; Enfusion Analytics System, which enables CIOs, portfolio managers, traders, and analysts to analyze portfolios through time horizons and automate customized visualized reports for internal and external stakeholders; and technology-powered and managed services. Enfusion, Inc. was founded in 1997 and is headquartered in Chicago, Illinois.