Critical Analysis: Endurance International Group (EIGI) and Debt Resolve (OTCMKTS:DRSV)

Debt Resolve (OTCMKTS:DRSV) and Endurance International Group (NASDAQ:EIGI) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk and Volatility

Debt Resolve has a beta of -3.11, meaning that its share price is 411% less volatile than the S&P 500. Comparatively, Endurance International Group has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Insider & Institutional Ownership

0.3% of Debt Resolve shares are owned by institutional investors. Comparatively, 90.2% of Endurance International Group shares are owned by institutional investors. 56.1% of Debt Resolve shares are owned by insiders. Comparatively, 50.8% of Endurance International Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Debt Resolve and Endurance International Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Debt Resolve	$4.43 million	0.09	-$1.77 million	N/A	N/A
Endurance International Group	$1.15 billion	0.90	$4.53 million	$0.03	238.67

Endurance International Group has higher revenue and earnings than Debt Resolve.

Profitability

This table compares Debt Resolve and Endurance International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Debt Resolve	N/A	N/A	N/A
Endurance International Group	-0.23%	-1.75%	-0.10%

Analyst Ratings

This is a breakdown of current ratings for Debt Resolve and Endurance International Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Debt Resolve	0	0	0	0	N/A
Endurance International Group	1	2	1	0	2.00

Endurance International Group has a consensus price target of $9.17, suggesting a potential upside of 28.03%. Given Endurance International Group’s higher probable upside, analysts clearly believe Endurance International Group is more favorable than Debt Resolve.

Summary

Endurance International Group beats Debt Resolve on 7 of the 11 factors compared between the two stocks.

About Debt Resolve

Debt Resolve, Inc. provides software solutions to consumer lenders or those collecting consumer loans using Software-as-a-Service model in the United States. Its solutions facilitate Web-based payments or the resolution of delinquent or defaulted consumer debt. The company also provides services in the student loan document preparation industry. It serves consumer banks, collection agencies, and the buyers of defaulted debt. The company was formerly known as Lombardia Acquisition Corp. and changed its name to Debt Resolve, Inc. in May 2003. Debt Resolve, Inc. was founded in 1997 and is based in Hawthorne, New York.

About Endurance International Group

Endurance International Group Holdings, Inc., together with its subsidiaries, provides cloud-based platform solutions for small-and medium-sized businesses worldwide. 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 with varying degrees of technical sophistication 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 solution that enables 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; products that enable secure and encrypted payments, shopping carts, payment processing and related services, mobile payments, and other forms of e-commerce; platform that creates and manages digital storefront listings through one interface; and professional services. Endurance International Group Holdings, Inc. was founded in 1997 and is headquartered in Burlington, Massachusetts.

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