Financial Analysis: Angi (NASDAQ:ANGI) versus Tucows (NASDAQ:TCX)

Tucows (NASDAQ:TCX) and Angi (NASDAQ:ANGI) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Insider and Institutional Ownership

73.6% of Tucows shares are held by institutional investors. Comparatively, 12.8% of Angi shares are held by institutional investors. 9.4% of Tucows shares are held by company insiders. Comparatively, 1.7% of Angi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Tucows and Angi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tucows	-19.43%	N/A	-8.88%
Angi	4.25%	4.41%	2.50%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Tucows and Angi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tucows	1	0	0	0	1.00
Angi	1	5	3	1	2.40

Angi has a consensus price target of $16.33, indicating a potential upside of 101.65%. Given Angi’s stronger consensus rating and higher probable upside, analysts clearly believe Angi is more favorable than Tucows.

Risk and Volatility

Tucows has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Angi has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Valuation & Earnings

This table compares Tucows and Angi”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tucows	$390.30 million	0.53	-$109.86 million	($6.84)	-2.74
Angi	$1.03 billion	0.34	$36.00 million	$0.93	8.71

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

Summary

Angi beats Tucows on 12 of the 15 factors compared between the two stocks.

About Tucows

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in North America and Europe. It operates in three segments: Ting, Wavelo and Tucows Domains. The Ting segment provides fiber and fixed wireless internet services. The Wavelo segment offers individual developer tools, subscription, billing management, network orchestration, and provisioning services. This segment also provides billing solutions under Platypus brand. The Tucows Domains segment offers name registration, as well as value added services under OpenSRS, eNom, Ascio, EPAG, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.

About Angi

Angi Inc. connects home service professionals with consumers in the United States and internationally. The company operates through three segments: Ads and Leads, Services, and International. It provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, matches consumers with independently established home services professionals. The company's Ads and Leads segment connects consumers with service professionals for local services through nationwide network of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, mobile, and magazine advertising to certified service professionals, as well as services and tools, including quoting, invoicing, and payment services. This segment provides consumers access to online True Cost Guide, which provides project cost information for various project types, as well as a library of home services-related content. Its Services segment offers a pre-priced offering, pursuant to which consumers can request services through Angi and Handy branded platforms and pay for such services on the applicable platform directly; and provides professionals with access to a pool of consumers seeking service professionals and must validate their home services experience, as well as attest to holding the requisite license(s) and maintain an acceptable rating to remain on Services platforms. The company's International segment operates Travaux, MyBuilder, MyHammer, Werkspo, and Homestars home services marketplaces. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. operates as a subsidiary of IAC Inc.