Comparing Earlyworks (NASDAQ:ELWS) & Synchronoss Technologies (NASDAQ:SNCR)

Earlyworks (NASDAQ:ELWS) and Synchronoss Technologies (NASDAQ:SNCR) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for Earlyworks and Synchronoss Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Earlyworks	0	0	0	0	N/A
Synchronoss Technologies	0	0	0	0	N/A

Synchronoss Technologies has a consensus target price of $36.00, indicating a potential upside of 424.02%. Given Synchronoss Technologies’ higher possible upside, analysts plainly believe Synchronoss Technologies is more favorable than Earlyworks.

Valuation and Earnings

This table compares Earlyworks and Synchronoss Technologies’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Earlyworks	$340,000.00	7.10	-$2.81 million	N/A	N/A
Synchronoss Technologies	$164.20 million	0.43	-$54.53 million	($6.62)	-1.04

Earlyworks has higher earnings, but lower revenue than Synchronoss Technologies.

Profitability

This table compares Earlyworks and Synchronoss Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Earlyworks	N/A	N/A	N/A
Synchronoss Technologies	-25.43%	-17.99%	-2.21%

Institutional and Insider Ownership

0.5% of Earlyworks shares are owned by institutional investors. Comparatively, 51.7% of Synchronoss Technologies shares are owned by institutional investors. 6.9% of Synchronoss Technologies 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.

Summary

Earlyworks beats Synchronoss Technologies on 5 of the 9 factors compared between the two stocks.

About Earlyworks

Earlyworks Co., Ltd operates as a blockchain-based technology company in Japan. The company builds products, deliver services, and develop solutions based on its proprietary Grid Ledger System to leverage blockchain technology in various business settings, including advertisement tracking, online visitor management, and sales of non-fungible tokens. It also provides software and system development services; consulting and solution services; blockchain system solution planning; and proposal, design, and development planning services. The company serves the information technology, shipping, real estate, entertainment, cosmetics, and chemical products sectors. Earlyworks Co., Ltd was incorporated in 2018 and is based in Tokyo, Japan.

About Synchronoss Technologies

Synchronoss Technologies, Inc. provides cloud, messaging, digital, and network management solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Synchronoss Personal Cloud platform that allows customers' subscribers to backup and protect, engage with, and manage their personal content. It also provides Synchronoss' Messaging platform comprising advanced messaging platform and email suites; and OnboardX products, including mobile content transfer solution that offers wireless transfer of content from one mobile smart device to another in a carrier retail location or at home/work, etc., as well as out of box experience solution, a device setup solution that assists customers in setting up the features of new device, such as Wi-Fi, email, social network accounts and voicemail, prompting restoration of content, and enrollment in a cloud service. In addition, the company provides NetworkX products comprising spatialNX, an enterprise-wide access to network information, including physical location, specifications, attributes, connectivity, and capacity for every plant asset; ConnectNX, a system that eliminates manual handling of service orders and manages the full order lifecycle between customer and supplier through automation and rules-based validation; and ExpenseNX, a financial analytics platform. Further, it offers professional services, such as consulting, installation and deployment, configuration, systems integration, and support services; and software development and customization services. The company markets and sells its services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was incorporated in 2000 and is headquartered in Bridgewater, New Jersey.