Reviewing Expensify (NASDAQ:EXFY) and Snail (NASDAQ:SNAL)

Snail (NASDAQ:SNAL) and Expensify (NASDAQ:EXFY) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Snail and Expensify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snail	3.15%	136.34%	3.51%
Expensify	-11.81%	-14.72%	-8.89%

Insider & Institutional Ownership

0.4% of Snail shares are held by institutional investors. Comparatively, 68.4% of Expensify shares are held by institutional investors. 78.2% of Snail shares are held by insiders. Comparatively, 17.3% of Expensify shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Snail and Expensify, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snail	0	0	0	0	0.00
Expensify	0	3	1	0	2.25

Expensify has a consensus target price of $3.17, indicating a potential downside of 12.76%. Given Expensify’s stronger consensus rating and higher probable upside, analysts plainly believe Expensify is more favorable than Snail.

Valuation & Earnings

This table compares Snail 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
Snail	$86.82 million	0.84	-$9.09 million	$0.09	21.94
Expensify	$137.44 million	2.04	-$41.46 million	($0.18)	-20.17

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

Volatility and Risk

Snail has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Expensify has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.

About Snail

Snail, Inc., together with its subsidiaries, researches, develops, markets, publishes, and distributes interactive digital entertainment for consumers worldwide. It offers games, content, and support for various platforms, including game consoles, personal computers, mobile phones, and tablets. Snail, Inc. was founded in 2009 and is headquartered in Culver City, California. Snail, Inc. operates as a subsidiary of Olive Wood Global Development Limited.

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.