Endurance International Group (NASDAQ:EIGI) and Bottomline Technologies (NASDAQ:EPAY) are both small-cap computer and 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.
Institutional & Insider Ownership
92.2% of Endurance International Group shares are owned by institutional investors. Comparatively, 89.6% of Bottomline Technologies shares are owned by institutional investors. 50.6% of Endurance International Group shares are owned by company insiders. Comparatively, 2.4% of Bottomline Technologies 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.
Profitability
This table compares Endurance International Group and Bottomline Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Endurance International Group | -2.07% | 5.21% | 0.33% |
| Bottomline Technologies | 2.24% | 6.07% | 3.47% |
Earnings and Valuation
This table compares Endurance International Group and Bottomline Technologies’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Endurance International Group | $1.15 billion | 0.73 | $4.53 million | $0.03 | 189.67 |
| Bottomline Technologies | $421.96 million | 4.30 | $9.43 million | $0.97 | 42.62 |
Bottomline Technologies has lower revenue, but higher earnings than Endurance International Group. Bottomline Technologies is trading at a lower price-to-earnings ratio than Endurance International Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Endurance International Group has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Bottomline Technologies has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Endurance International Group and Bottomline Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Endurance International Group | 0 | 3 | 1 | 0 | 2.25 |
| Bottomline Technologies | 0 | 1 | 5 | 1 | 3.00 |
Endurance International Group presently has a consensus price target of $8.83, suggesting a potential upside of 55.24%. Bottomline Technologies has a consensus price target of $60.79, suggesting a potential upside of 47.04%. Given Endurance International Group’s higher possible upside, research analysts clearly believe Endurance International Group is more favorable than Bottomline Technologies.
Summary
Bottomline Technologies beats Endurance International Group on 9 of the 15 factors compared between the two stocks.
About Endurance International Group
Endurance International Group Holdings, Inc., together with its subsidiaries, provides cloud-based platform solutions for small-and medium-sized businesses in the United States and internationally. The company operates in three segments: Web Presence, Domain, and Email Marketing. It offers Web hosting services, including entry-level shared hosting, and virtual private server and dedicated hosting solutions; Website building tools that enable subscribers to create a Web presence; domain registration, management, and resale services; malware protection solutions to protect subscribers’ Websites from viruses, malicious code, and other threats; and backup control solutions that enable subscribers to schedule, maintain, manage, and restore backups of their online data and Websites. The company also provides solutions that allow subscribers to have their Websites rendered on mobile devices; search engine optimization and marketing solutions; tools and services that enable subscribers to communicate with their customers and potential customers through social networks; and control panels and dashboards that offer subscribers with tools to analyze activity on their Websites. In addition, it offers email marketing solutions that enable subscribers to communicate with their customers and potential customers through email; email capabilities, including custom mailboxes that reflect a subscriber’s domain name, spam filters, email aliases, and forwarding functionality; email, collaboration, and file sharing tools; products that enable secure and encrypted payments, shopping carts, payment processing and related services, and mobile payments; platform that creates and manages digital storefront listings through one interface; and professional services and Web design services. The company also offers Blue Flash, which offers personal guidance and helps users to build their Websites. The company was founded in 1997 and is headquartered in Burlington, Massachusetts.
About Bottomline Technologies
Bottomline Technologies (de), Inc. provides software as a service based solutions. It operates through four segments: Cloud Solutions, Banking Solutions, Payments and Transactional Documents, and Other. The company’s products and services include Paymode-X, a cloud-based payment network, which allows businesses to transition to electronic integrated payables; and cloud-based financial messaging solutions that enable banks and corporations to exchange financial information, such as payment instructions, cash reporting, and other messages to facilitate transaction settlement. It also provides digital banking solutions that provide payments, cash management, and online banking solutions to financial institutions; and cloud-based legal spend management solutions and services that integrate with claims management, and time and billing systems to automate legal invoice management processes. In addition, the company offers cyber fraud and risk management solutions that monitor, replay, and analyze user behavior and payment transactions to flag and stop suspicious activity in real time; and payment and document automation solutions to automate a range of business documents and supply chain processes, as well as related Web-based delivery and document archive. Further, it provides healthcare solutions for patient registration, electronic signature, mobile document, and payments; and consulting, project implementation, and training services, as well as sells printers, check papers, and magnetic ink character recognition toners. The company serves customers in the banking, financial services, insurance, healthcare, technology, retail, communications, education, media, manufacturing, and government industries in the United States, the United Kingdom, Continental Europe, the Asia-Pacific, and the Middle East. Bottomline Technologies (de), Inc. was founded in 1989 and is headquartered in Portsmouth, New Hampshire.
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