Comparing Crexendo (NASDAQ:CXDO) & Silvaco Group (NASDAQ:SVCO)

Crexendo (NASDAQ:CXDO) and Silvaco Group (NASDAQ:SVCO) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Earnings and Valuation

This table compares Crexendo and Silvaco Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crexendo	$68.17 million	2.84	$5.07 million	$0.14	41.43
Silvaco Group	$63.06 million	3.94	-$41.21 million	($0.72)	-10.19

Crexendo has higher revenue and earnings than Silvaco Group. Silvaco Group is trading at a lower price-to-earnings ratio than Crexendo, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Crexendo has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Silvaco Group has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Institutional and Insider Ownership

9.5% of Crexendo shares are held by institutional investors. 47.2% of Crexendo shares are held by company insiders. Comparatively, 47.9% of Silvaco Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Crexendo and Silvaco Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crexendo	0	1	3	0	2.75
Silvaco Group	1	0	3	1	2.80

Crexendo currently has a consensus price target of $10.50, suggesting a potential upside of 81.03%. Silvaco Group has a consensus price target of $12.67, suggesting a potential upside of 72.57%. Given Crexendo’s higher possible upside, research analysts plainly believe Crexendo is more favorable than Silvaco Group.

Profitability

This table compares Crexendo and Silvaco Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crexendo	5.31%	14.34%	11.44%
Silvaco Group	-30.43%	-15.29%	-10.02%

Summary

Crexendo beats Silvaco Group on 10 of the 14 factors compared between the two stocks.

About Crexendo

Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.

About Silvaco Group

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.