Ceridian HCM (NYSE:CDAY) and eGain (NASDAQ:EGAN) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Ceridian HCM and eGain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ceridian HCM -5.13% 0.89% 0.23%
eGain 5.25% 225.04% 8.47%

Valuation and Earnings

This table compares Ceridian HCM and eGain’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ceridian HCM $746.40 million 9.39 -$63.40 million ($0.05) -995.00
eGain $61.31 million 4.09 -$1.99 million N/A N/A

eGain has lower revenue, but higher earnings than Ceridian HCM.

Institutional & Insider Ownership

71.5% of Ceridian HCM shares are owned by institutional investors. Comparatively, 76.5% of eGain shares are owned by institutional investors. 26.9% of Ceridian HCM shares are owned by company insiders. Comparatively, 38.6% of eGain shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Ceridian HCM and eGain, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ceridian HCM 0 7 5 0 2.42
eGain 0 1 2 0 2.67

Ceridian HCM presently has a consensus price target of $45.70, indicating a potential downside of 8.14%. eGain has a consensus price target of $14.00, indicating a potential upside of 69.08%. Given eGain’s stronger consensus rating and higher possible upside, analysts clearly believe eGain is more favorable than Ceridian HCM.

Summary

eGain beats Ceridian HCM on 9 of the 12 factors compared between the two stocks.

Ceridian HCM Company Profile

Ceridian HCM Holding Inc. operates as a human capital management (HCM) software company in the United States and internationally. The company offers Dayforce, a cloud HCM platform that provides human resources (HR), payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud platform, which offers scalable and straightforward payroll and HR solutions. It also provides Bureau solutions for payroll and payroll-related services. Ceridian HCM Holding Inc. was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

eGain Company Profile

eGain Corporation operates as a software-as-a service provider of customer engagement solutions in the United States, the United Kingdom, India, and internationally. It provides eGain solution, a unified cloud software solution to automate, augment, and orchestrate customer engagement, including digital-first, Omni channel desktop, artificial intelligence (AI) and knowledge, and analytics and machine learning applications, as well as platform APIs and pre-built third-party connectors. The company's suite includes various applications for digital interaction, knowledge management, and AI-based process guidance. It also provides integrated analytics for contact centers and digital properties to measure, manage, and optimize resources. In addition, the company offers subscription services and customer support services; consulting services, including implementation, custom solution development, and systems integration services; and education services, such as training programs, as well as online tutorial modules. It serves customers in various industry sectors, including the healthcare, retail, telecommunications, financial services, insurance, outsourced services, technology, utilities, government, manufacturing, and consumer electronics industries. The company was founded in 1997 and is headquartered in Sunnyvale, California.

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