Financial Review: GigaMedia (NASDAQ:GIGM) and LivePerson (NASDAQ:LPSN)

LivePerson (NASDAQ:LPSNGet Free Report) and GigaMedia (NASDAQ:GIGMGet Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Earnings & Valuation

This table compares LivePerson and GigaMedia”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LivePerson $312.47 million 0.10 -$134.27 million ($27.95) -0.10
GigaMedia $2.97 million 5.71 -$2.30 million ($0.11) -13.95

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

Profitability

This table compares LivePerson and GigaMedia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LivePerson -51.72% N/A -7.71%
GigaMedia -37.82% -3.25% -3.08%

Analyst Recommendations

This is a summary of recent recommendations and price targets for LivePerson and GigaMedia, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LivePerson 1 1 0 0 1.50
GigaMedia 1 0 0 0 1.00

Risk and Volatility

LivePerson has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Institutional and Insider Ownership

79.8% of LivePerson shares are held by institutional investors. Comparatively, 13.5% of GigaMedia shares are held by institutional investors. 2.0% of LivePerson shares are held by insiders. Comparatively, 1.0% of GigaMedia shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

LivePerson beats GigaMedia on 7 of the 12 factors compared between the two stocks.

About LivePerson

(Get Free Report)

LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.

About GigaMedia

(Get Free Report)

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.

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