Financial Analysis: CI&T (NYSE:CINT) & eGain (NASDAQ:EGAN)

eGain (NASDAQ:EGAN) and CI&T (NYSE:CINT) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Insider and Institutional Ownership

53.9% of eGain shares are owned by institutional investors. Comparatively, 92.5% of CI&T shares are owned by institutional investors. 38.7% of eGain shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

eGain has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, CI&T has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for eGain and CI&T, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eGain	0	2	2	0	2.50
CI&T	0	2	5	1	2.88

eGain presently has a consensus price target of $15.00, indicating a potential upside of 47.64%. CI&T has a consensus price target of $7.20, indicating a potential upside of 52.03%. Given CI&T’s stronger consensus rating and higher possible upside, analysts plainly believe CI&T is more favorable than eGain.

Profitability

This table compares eGain and CI&T’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eGain	38.19%	10.05%	5.34%
CI&T	7.83%	12.42%	6.74%

Earnings & Valuation

This table compares eGain and CI&T”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eGain	$90.14 million	3.05	$32.25 million	$1.23	8.26
CI&T	$439.11 million	1.45	$29.49 million	$0.27	17.54

eGain has higher earnings, but lower revenue than CI&T. eGain is trading at a lower price-to-earnings ratio than CI&T, indicating that it is currently the more affordable of the two stocks.

Summary

CI&T beats eGain on 10 of the 15 factors compared between the two stocks.

About eGain

eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.

About CI&T

CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno Guiçardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.