Crexendo (NASDAQ:CXDO) & ATN International (NASDAQ:ATNI) Critical Analysis

Crexendo (NASDAQ:CXDO) and ATN International (NASDAQ:ATNI) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Valuation & Earnings

This table compares Crexendo and ATN International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crexendo	$53.20 million	2.64	-$360,000.00	$0.03	175.06
ATN International	$762.22 million	0.39	-$14.54 million	($2.72)	-7.21

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

Volatility and Risk

Crexendo has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, ATN International has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Crexendo and ATN International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crexendo	0	0	2	0	3.00
ATN International	0	0	1	1	3.50

Crexendo currently has a consensus target price of $6.50, indicating a potential upside of 23.81%. ATN International has a consensus target price of $31.00, indicating a potential upside of 58.16%. Given ATN International’s stronger consensus rating and higher probable upside, analysts plainly believe ATN International is more favorable than Crexendo.

Profitability

This table compares Crexendo and ATN International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crexendo	2.09%	9.09%	7.30%
ATN International	-4.79%	0.52%	0.18%

Institutional & Insider Ownership

9.5% of Crexendo shares are owned by institutional investors. Comparatively, 65.5% of ATN International shares are owned by institutional investors. 56.2% of Crexendo shares are owned by insiders. Comparatively, 5.1% of ATN International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Crexendo beats ATN International on 10 of the 15 factors compared between the two stocks.

About Crexendo

Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.

About ATN International

ATN International, Inc., through its subsidiaries, engages in the provision of digital infrastructure and communications services to residential, business, and government customers in the United States and internationally. The company operates through International Telecom and US Telecom segments. The company offers mobile, data, voice, broadband, and fixed services; handsets and accessories; and wholesale roaming, long distance voice services, and site maintenance services. It also leases critical network infrastructure, including towers and transport facilities; and provides managed information technology services, such as network, application, infrastructure, and hosting services. The company was formerly known as Atlantic Tele-Network, Inc. and changed its name to ATN International, Inc. in June 2016. ATN International, Inc. was founded in 1987 and is headquartered in Beverly, Massachusetts.