Analyzing eGain (EGAN) and Its Competitors

eGain (NASDAQ:EGAN) is one of 959 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare eGain to similar businesses based on the strength of its dividends, profitability, risk, institutional ownership, analyst recommendations, valuation and earnings.

Institutional & Insider Ownership

53.9% of eGain shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 41.1% of eGain shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for eGain and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eGain	0	3	0	0	2.00
eGain Competitors	5835	21614	45009	1500	2.57

eGain currently has a consensus price target of $6.50, indicating a potential upside of 7.44%. As a group, “Software” companies have a potential upside of 27.84%. Given eGain’s competitors stronger consensus rating and higher probable upside, analysts plainly believe eGain has less favorable growth aspects than its competitors.

Volatility and Risk

eGain has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, eGain’s competitors have a beta of 1.35, indicating that their average share price is 35% more volatile than the S&P 500.

Earnings and Valuation

This table compares eGain and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
eGain	$91.14 million	$8.88 million	21.61
eGain Competitors	$1.91 billion	$382.06 million	112.22

eGain’s competitors have higher revenue and earnings than eGain. eGain is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares eGain and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eGain	8.50%	8.63%	5.25%
eGain Competitors	-599.26%	26.08%	-8.90%

Summary

eGain competitors beat eGain on 9 of the 13 factors compared.

About eGain

eGain Corporation develops cloud-based software for enterprise knowledge management and customer service operations. Its platform combines artificial intelligence (AI), knowledge management, workflow automation, and analytics to help organizations manage information and support customer interactions. The company’s products and services include knowledge management systems, conversational AI, digital engagement tools, agent-assistance software, and customer service analytics. These solutions are used to manage organizational knowledge, automate customer inquiries, assist service representatives, and support customer interactions across web, messaging, email, and voice channels. eGain serves enterprise customers across industries, including financial services, healthcare, telecommunications, retail, and government.