Head to Head Analysis: QuoteMedia (OTCMKTS:QMCI) vs. Crexendo (NASDAQ:CXDO)

QuoteMedia (OTCMKTS:QMCI) and Crexendo (NASDAQ:CXDO) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Valuation & Earnings

This table compares QuoteMedia and Crexendo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuoteMedia	$20.25 million	0.67	-$2.32 million	($0.03)	-5.03
Crexendo	$72.82 million	4.46	$5.07 million	$0.15	66.87

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuoteMedia	-11.64%	N/A	-40.59%
Crexendo	6.15%	13.84%	11.21%

Analyst Recommendations

This is a summary of current ratings and recommmendations for QuoteMedia and Crexendo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuoteMedia	0	1	0	0	2.00
Crexendo	0	1	4	0	2.80

Crexendo has a consensus target price of $10.40, indicating a potential upside of 3.69%. Given Crexendo’s stronger consensus rating and higher possible upside, analysts clearly believe Crexendo is more favorable than QuoteMedia.

Volatility & Risk

QuoteMedia has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Insider and Institutional Ownership

9.5% of Crexendo shares are owned by institutional investors. 47.1% of QuoteMedia shares are owned by insiders. Comparatively, 47.2% of Crexendo shares are owned by 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.

Summary

Crexendo beats QuoteMedia on 14 of the 14 factors compared between the two stocks.

About QuoteMedia

QuoteMedia, Inc. provides financial data, market research information, analytics, news feeds, and financial software solutions to online brokerages, banks, clearing firms, financial service companies, media portals, and public corporations worldwide. It collects, aggregates, and delivers delayed and real-time financial data content through the Internet. The company also offers market information and services, including streaming stock market data feeds, research and analysis information, content applications, portfolio management systems, software products, corporate investor relations provisioning, news services, mobile apps, and custom development. In addition, its data feeds coverage includes equities, options, futures, commodities, currencies, mutual funds, ETFs, and indices. Further, the company provides financial data delivery application products and components comprising quote modules, charts, market movers, news, watch lists, tickers, market summaries, option chains, filings, fundamentals, investor relations solutions, stock and fund screeners, and others; and QMod, a web delivery system for delivering market data content to Web platforms. Additionally, it offers portfolio managements systems, including Quotestream Desktop, We, and Mobile, a Web-delivered, embedded application providing real-time, tick-by-tick, streaming market quotes and research information; Quotestream Professional that offers low-latency tick-by-tick data, customizable screens, advanced charting, comprehensive technical analysis, news, and research data for financial services professionals; Web Portfolio Manager, which provides immediate web access to detailed quote data, market and company news, charting, depth/level II, filings, historical data, snap quotes, and others; and Quotestream Connect that delivers real time data feeds to individual users to power third party applications. The company was incorporated in 1992 and is headquartered in Fountain Hills, Arizona.

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.