Crexendo (NASDAQ:CXDO – Get Free Report) and Telefônica Brasil (NYSE:VIV – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.
Insider & Institutional Ownership
9.5% of Crexendo shares are held by institutional investors. Comparatively, 5.2% of Telefônica Brasil shares are held by institutional investors. 56.2% of Crexendo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Crexendo has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Telefônica Brasil has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Crexendo | $53.20 million | 1.56 | -$360,000.00 | $0.05 | 62.20 |
| Telefônica Brasil | $10.44 billion | 1.31 | $1.01 billion | $0.63 | 13.02 |
Telefônica Brasil has higher revenue and earnings than Crexendo. Telefônica Brasil is trading at a lower price-to-earnings ratio than Crexendo, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Crexendo and Telefônica Brasil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Crexendo | 3.01% | 10.88% | 8.59% |
| Telefônica Brasil | 9.63% | 7.39% | 4.21% |
Analyst Ratings
This is a summary of recent ratings for Crexendo and Telefônica Brasil, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Crexendo | 0 | 0 | 2 | 0 | 3.00 |
| Telefônica Brasil | 0 | 3 | 3 | 0 | 2.50 |
Crexendo presently has a consensus price target of $6.38, indicating a potential upside of 104.98%. Telefônica Brasil has a consensus price target of $11.35, indicating a potential upside of 38.41%. Given Crexendo’s stronger consensus rating and higher probable upside, research analysts clearly believe Crexendo is more favorable than Telefônica Brasil.
Summary
Crexendo beats Telefônica Brasil on 9 of the 14 factors compared between the two stocks.
About Crexendo
Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.
About Telefônica Brasil
Telefônica Brasil S.A., together with its subsidiaries, operates as a mobile telecommunications company in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband internet access through 3G, 4G, 4.5G, and 5G, as well as mobile value-added and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through IPTV technologies; network services, such as rental of facilities; other services comprising internet access, private network connectivity, computer equipment leasing, extended service, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and security and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. It markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and outbound tele sales. The company was formerly known as Telecomunicações de São Paulo S.A. – TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil.
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