Analyzing Earlyworks (NASDAQ:ELWS) and The Glimpse Group (NASDAQ:VRAR)

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

Insider & Institutional Ownership

21.4% of The Glimpse Group shares are held by institutional investors. Comparatively, 0.5% of Earlyworks shares are held by institutional investors. 17.1% of The Glimpse Group shares are held by company 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.

Analyst Recommendations

This is a summary of current recommendations for The Glimpse Group and Earlyworks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Glimpse Group	1	0	1	0	2.00
Earlyworks	1	0	0	0	1.00

The Glimpse Group presently has a consensus price target of $2.62, indicating a potential upside of 142.59%. Given The Glimpse Group’s stronger consensus rating and higher probable upside, analysts clearly believe The Glimpse Group is more favorable than Earlyworks.

Profitability

This table compares The Glimpse Group and Earlyworks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Glimpse Group	-27.10%	-16.60%	-14.03%
Earlyworks	N/A	N/A	N/A

Volatility & Risk

The Glimpse Group has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Earlyworks has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

Earnings & Valuation

This table compares The Glimpse Group and Earlyworks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Glimpse Group	$10.53 million	2.16	-$2.55 million	($0.12)	-9.00
Earlyworks	$3.09 million	5.84	-$1.80 million	N/A	N/A

Earlyworks has lower revenue, but higher earnings than The Glimpse Group.

About The Glimpse Group

The Glimpse Group, Inc., a virtual reality (VR) and augmented reality (AR) platform company, provides enterprise-focused software, services, and solutions in the United States. It offers QReal, a software that creates and distributes photorealistic 3D interactive digital models and experiences in AR; Immersive Health Group, a VR/AR platform for evidence-based and outcome driven healthcare solutions; and Foretell Reality, a social VR platform for behavioral health, support groups, collaboration, and soft skills training. The company also provides Glimpse Turkey for developing and creating 3D models for QReal; XR Terra that provides immersive technologies for teaching courses and training; Sector 5 Digital for corporate immersive experiences and events; PulpoAR, an AR try-on technology that targets the beauty and cosmetics industry; and Brightline Interactive, which offers immersive and interactive experiences, training scenarios, and simulations for government and commercial customers. The company was incorporated in 2016 and is headquartered in New York, New York.

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.