eGain (NASDAQ:EGAN – Get Free Report) and Asana (NYSE:ASAN – Get Free Report) 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 institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Profitability
This table compares eGain and Asana’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| eGain | 41.68% | 12.56% | 7.48% |
| Asana | -20.21% | -74.32% | -15.51% |
Valuation & Earnings
This table compares eGain and Asana”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| eGain | $88.43 million | 2.30 | $32.25 million | $1.38 | 5.38 |
| Asana | $790.81 million | 2.16 | -$189.02 million | ($0.69) | -10.73 |
eGain has higher earnings, but lower revenue than Asana. Asana is trading at a lower price-to-earnings ratio than eGain, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for eGain and Asana, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| eGain | 0 | 3 | 1 | 0 | 2.25 |
| Asana | 2 | 7 | 3 | 0 | 2.08 |
eGain presently has a consensus target price of $15.25, suggesting a potential upside of 105.53%. Asana has a consensus target price of $9.27, suggesting a potential upside of 25.22%. Given eGain’s stronger consensus rating and higher probable upside, research analysts clearly believe eGain is more favorable than Asana.
Risk & Volatility
eGain has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Asana has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.
Insider & Institutional Ownership
53.9% of eGain shares are held by institutional investors. Comparatively, 26.2% of Asana shares are held by institutional investors. 38.7% of eGain shares are held by company insiders. Comparatively, 61.3% of Asana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
eGain beats Asana on 10 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 Asana
Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. Its platform helps organizations to orchestrate work from daily tasks to cross-functional strategic initiatives; manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones; and communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights. The company serves customers in various industries, such as technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
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