Analyzing Expensify (NASDAQ:EXFY) & LivePerson (NASDAQ:LPSN)

LivePerson (NASDAQ:LPSN) and Expensify (NASDAQ:EXFY) are both small-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Earnings & Valuation

This table compares LivePerson and Expensify”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivePerson	$228.89 million	0.17	-$67.23 million	($13.74)	-0.23
Expensify	$142.10 million	1.29	-$21.39 million	($0.17)	-13.62

Expensify has lower revenue, but higher earnings than LivePerson. Expensify is trading at a lower price-to-earnings ratio than LivePerson, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for LivePerson and Expensify, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivePerson	1	0	0	0	1.00
Expensify	1	0	2	0	2.33

Expensify has a consensus price target of $3.00, suggesting a potential upside of 29.59%. Given Expensify’s stronger consensus rating and higher probable upside, analysts clearly believe Expensify is more favorable than LivePerson.

Volatility and Risk

LivePerson has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Expensify has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Profitability

This table compares LivePerson and Expensify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LivePerson	-51.89%	N/A	-8.39%
Expensify	-11.31%	-11.54%	-8.34%

Insider & Institutional Ownership

79.8% of LivePerson shares are held by institutional investors. Comparatively, 68.4% of Expensify shares are held by institutional investors. 2.0% of LivePerson shares are held by insiders. Comparatively, 11.7% of Expensify shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Expensify beats LivePerson on 10 of the 14 factors compared between the two stocks.

About LivePerson

LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.