LivePerson (NASDAQ:LPSN – Get Free Report) and Expensify (NASDAQ:EXFY – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.
Valuation & Earnings
This table compares LivePerson and Expensify”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LivePerson | $228.89 million | 0.17 | -$67.23 million | ($13.74) | -0.23 |
| Expensify | $142.10 million | 1.27 | -$21.39 million | ($0.17) | -13.47 |
Expensify has lower revenue, but higher earnings than LivePerson. Expensify 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 Expensify’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LivePerson | -51.89% | N/A | -8.39% |
| Expensify | -11.31% | -11.54% | -8.34% |
Volatility and Risk
LivePerson has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Expensify has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for LivePerson and Expensify, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LivePerson | 1 | 0 | 0 | 0 | 1.00 |
| Expensify | 1 | 0 | 2 | 0 | 2.33 |
Expensify has a consensus price target of $3.00, suggesting a potential upside of 31.00%. Given Expensify’s stronger consensus rating and higher possible upside, analysts clearly believe Expensify is more favorable than LivePerson.
Insider & Institutional Ownership
79.8% of LivePerson shares are owned by institutional investors. Comparatively, 68.4% of Expensify shares are owned by institutional investors. 2.0% of LivePerson shares are owned by insiders. Comparatively, 11.7% of Expensify shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Expensify beats LivePerson on 10 of the 14 factors compared between the two stocks.
About LivePerson
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 Expensify
Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.
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