Head to Head Analysis: Asana (NYSE:ASAN) vs. eGain (NASDAQ:EGAN)

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

Earnings and Valuation

This table compares Asana and eGain”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asana	$790.81 million	2.01	-$189.02 million	($0.69)	-10.01
eGain	$92.22 million	2.24	$32.25 million	$1.38	5.44

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Asana	-20.21%	-74.32%	-15.51%
eGain	41.68%	12.56%	7.48%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Asana and eGain, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asana	2	7	3	0	2.08
eGain	0	3	1	0	2.25

Asana currently has a consensus target price of $9.27, suggesting a potential upside of 34.21%. eGain has a consensus target price of $15.25, suggesting a potential upside of 103.06%. Given eGain’s stronger consensus rating and higher possible upside, analysts plainly believe eGain is more favorable than Asana.

Institutional & Insider Ownership

26.2% of Asana shares are owned by institutional investors. Comparatively, 53.9% of eGain shares are owned by institutional investors. 61.3% of Asana shares are owned by insiders. Comparatively, 38.7% of eGain shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Asana has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, eGain has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Summary

eGain beats Asana on 10 of the 14 factors compared between the two stocks.

About Asana

Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. Its platform helps organizations to orchestrate work from daily tasks to cross-functional strategic initiatives; manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones; and communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights. The company serves customers in various industries, such as technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

About eGain

eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.