Analyzing Great Elm Capital Group (GEC) and CYREN (CYRN)

Great Elm Capital Group (NASDAQ: GEC) and CYREN (NASDAQ:CYRN) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

39.6% of Great Elm Capital Group shares are held by institutional investors. Comparatively, 26.1% of CYREN shares are held by institutional investors. 6.6% of Great Elm Capital Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Great Elm Capital Group and CYREN’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Elm Capital Group N/A -28.99% -21.24%
CYREN -25.73% -27.40% -17.06%

Valuation & Earnings

This table compares Great Elm Capital Group and CYREN’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Great Elm Capital Group $4.93 million 17.18 -$7.25 million $3.21 1.14
CYREN $31.73 million 2.23 -$3.67 million ($0.20) -9.03

CYREN has higher revenue and earnings than Great Elm Capital Group. CYREN is trading at a lower price-to-earnings ratio than Great Elm Capital Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Great Elm Capital Group and CYREN, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Elm Capital Group 0 0 0 0 N/A
CYREN 0 0 0 0 N/A

Summary

Great Elm Capital Group beats CYREN on 5 of the 9 factors compared between the two stocks.

Great Elm Capital Group Company Profile

Great Elm Capital Group, Inc., formerly Unwired Planet, Inc., is a holding company. The Company makes investments in businesses and assets in various industries. The Company’s investment for long-term value creation is in the asset management business. The Company continues to explore other opportunities in the investment management business, including other business development companies (BDCs) that trade at a discount to their net asset value. The Company intends to build a diversified investment company consisting of the following three business lines: investment management, financial products and merchant banking. It is embarking on a program of creating bespoke financial products and creating a pipeline of acquisition opportunities. The Company’s subsidiary is Great Elm Capital Corporation (GECC).

CYREN Company Profile

CYREN Ltd. (CYREN) is engaged in developing and marketing information security solutions for protecting Web, e-mail and mobile transactions. The Company is a Security-as-a-Service provider of integrated cloud-based security technology solutions that mitigate cyber threats, malware attacks, information leaks, legal liability and productivity loss through the application of cyber intelligence. It delivers security services to a range of customers and original equipment manufacturer, and service provider distribution partners, including network and security vendors offering content security gateways, unified threat management solutions and antivirus solutions, and to service providers, such as Software-as-a-Service vendors, Web hosting providers and Internet service providers. Its technologies include CYREN GlobalView Cloud and Recurrent Pattern Detection. Its offerings include CYREN WebSecurity (CWS), CYREN EmailSecurity, Cyber Intelligence Suite and Embedded Solutions.

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