Verizon Communications (NYSE:VZ) and Crexendo (NASDAQ:CXDO) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.
Analyst Recommendations
This is a breakdown of recent recommendations for Verizon Communications and Crexendo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Verizon Communications | 0 | 13 | 6 | 1 | 2.40 |
Crexendo | 0 | 0 | 2 | 0 | 3.00 |
Verizon Communications currently has a consensus price target of $61.8421, suggesting a potential upside of 11.71%. Crexendo has a consensus price target of $7.00, suggesting a potential upside of 16.47%. Given Crexendo's stronger consensus rating and higher possible upside, analysts clearly believe Crexendo is more favorable than Verizon Communications.
Earnings & Valuation
This table compares Verizon Communications and Crexendo's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Verizon Communications | $131.87 billion | 1.74 | $19.27 billion | $4.81 | 11.51 |
Crexendo | $14.44 million | 7.48 | $1.14 million | $0.07 | 85.86 |
Verizon Communications has higher revenue and earnings than Crexendo. Verizon Communications is trading at a lower price-to-earnings ratio than Crexendo, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
64.9% of Verizon Communications shares are owned by institutional investors. Comparatively, 8.4% of Crexendo shares are owned by institutional investors. 0.1% of Verizon Communications shares are owned by insiders. Comparatively, 75.5% of Crexendo shares are owned 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.
Risk & Volatility
Verizon Communications has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500.
Profitability
This table compares Verizon Communications and Crexendo's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Verizon Communications | 14.76% | 32.15% | 6.87% |
Crexendo | 6.38% | 14.02% | 8.46% |
Summary
Verizon Communications beats Crexendo on 8 of the 15 factors compared between the two stocks.