Reviewing Dassault Systemes (OTCMKTS:DASTY) and eGain (NASDAQ:EGAN)

eGain (NASDAQ:EGAN) and Dassault Systemes (OTCMKTS:DASTY) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for eGain and Dassault Systemes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eGain	0	4	0	0	2.00
Dassault Systemes	1	5	0	1	2.14

eGain presently has a consensus price target of $6.50, suggesting a potential upside of 10.73%. Given eGain’s higher possible upside, research analysts clearly believe eGain is more favorable than Dassault Systemes.

Risk & Volatility

eGain has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Dassault Systemes has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares eGain and Dassault Systemes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eGain	9.74%	11.75%	7.06%
Dassault Systemes	21.32%	18.65%	10.91%

Valuation & Earnings

This table compares eGain and Dassault Systemes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eGain	$91.14 million	1.69	$8.88 million	$0.32	18.34
Dassault Systemes	$7.05 billion	4.41	$1.35 billion	$1.13	20.52

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

Institutional & Insider Ownership

53.9% of eGain shares are owned by institutional investors. Comparatively, 0.0% of Dassault Systemes shares are owned by institutional investors. 38.7% of eGain shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Dassault Systemes beats eGain on 11 of the 14 factors compared between the two stocks.

About eGain

eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.

About Dassault Systemes

Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS provides easy-to-use 2D and 3D product development solutions accessible to any business; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for intersection of natural resources, infrastructure, and urban planning; and BIOVIA that develops chemicals, biologics, and materials experiences. The company provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. The company distributes its products through direct and indirect sales channels. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; infrastructure, energy, and materials; home and lifestyle; architecture, engineering, and construction; cities, and public services; consumer packaged goods and retail; marine and offshore; and business services. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.