Critical Analysis: Xperi (NASDAQ:XPER) & Cloudward (OTCMKTS:CDWD)

Xperi (NASDAQ:XPER) and Cloudward (OTCMKTS:CDWD) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Profitability

This table compares Xperi and Cloudward’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xperi	-16.72%	-7.03%	-4.14%
Cloudward	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Xperi and Cloudward, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	0	0	1	0	3.00
Cloudward	0	0	0	0	0.00

Xperi currently has a consensus price target of $13.50, suggesting a potential upside of 100.89%. Given Xperi’s stronger consensus rating and higher probable upside, research analysts plainly believe Xperi is more favorable than Cloudward.

Institutional and Insider Ownership

94.3% of Xperi shares are owned by institutional investors. 2.1% of Xperi shares are owned by insiders. Comparatively, 27.8% of Cloudward shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Xperi and Cloudward”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$475.22 million	0.65	-$136.61 million	($0.08)	-84.00
Cloudward	N/A	N/A	N/A	N/A	N/A

Cloudward has lower revenue, but higher earnings than Xperi.

Summary

Xperi beats Cloudward on 5 of the 9 factors compared between the two stocks.

About Xperi

Xperi Inc. operates as a consumer and entertainment technology company worldwide. It offers Pay-TV solutions, including UX solutions that allows service providers to customize elements of the interactive program guide for their customers and to upgrade the programming features and services; IPTV, a cloud-based solution that supports various services and applications, such as TV programming, broadband OTT video content, digital music, photos, and other media experiences; managed IPTV service; video metadata and services; managed IPTV Service, a customizable, cloud-enabled, and end-to-end streaming video solution that enables operators to quickly launch a branded, fully compliant, full-featured Pay-TV service; metadata libraries comprising television, sports, movies, digital-first, celebrities, books, and video games; personalized content discovery, natural language voice, and insights; and TiVo DVR subscriptions, as well as technical support service. It also provides consumer electronics solutions, such as home and mobile audio solutions, and silicon and software solutions for edge inference; connected car solutions, including HD Radio and DTS AutoStage; and Media Platform that provides Vewd middleware solutions, TiVo OS, TiVo Stream 4K, connected TVs, and connected cars that leverage the TiVo OS, as well as advertising solutions. The company was incorporated in 2019 and is headquartered in San Jose, California.

About Cloudward

Cloudward, Inc. operates a Web application distribution platform that delivers Web applications for businesses. The company provides a software-as-a-service (SaaS) ecosystem for building, distributing, and using Web Applications, including a marketplace to deploy and support them. It enables software manufacturers to migrate existing applications or create new applications, as well as package, distribute, host, bill, market, and support the SaaS enabled applications through private label applications marketplaces. The company also develops products for Web applications, which include open standards-based tools, such as the Etelos Application Server and the Etelos Development Environment that support various common programming languages; the English Application Scripting Engine, an open standards-based scripting language for Web developers, businesses, and individual users; and Etelos App Sync, which integrates Web Applications built on its platform with other Web applications. In addition, the company offers Etelos Platform Suite, which allows third parties to use its software platforms and services to develop and operate a private label application and marketplace; and Etelos Web Application Hosting. Further, it provides professional services, including consulting and implementation services; and customer support and management. Cloudward, Inc. serves independent software vendors and marketplace partners, including non-technology businesses in North America, South America, Europe, and the Asia-Pacific region. The company was formerly known as Etelos, Inc. and changed its name to Cloudward, Inc. in August 2012. Cloudward, Inc. was founded in 1999 and is headquartered in Larkspur, California.