Head to Head Analysis: OI (OTCMKTS:OIBRQ) and Crexendo (NASDAQ:CXDO)

Crexendo (NASDAQ:CXDO) and OI (OTCMKTS:OIBRQ) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

9.5% of Crexendo shares are held by institutional investors. 56.2% of Crexendo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Crexendo and OI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crexendo	$53.20 million	2.90	-$360,000.00	$0.03	192.40
OI	$1.94 billion	0.01	-$1.58 billion	N/A	N/A

Crexendo has higher earnings, but lower revenue than OI.

Profitability

This table compares Crexendo and OI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crexendo	2.09%	9.09%	7.30%
OI	N/A	N/A	N/A

Risk & Volatility

Crexendo has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, OI has a beta of -16.94, indicating that its share price is 1,794% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Crexendo and OI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crexendo	0	0	3	0	3.00
OI	0	0	0	0	0.00

Crexendo currently has a consensus price target of $6.67, indicating a potential upside of 15.54%. Given Crexendo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Crexendo is more favorable than OI.

Summary

Crexendo beats OI on 11 of the 12 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 OI

Oi S.A., together with its subsidiaries, provides telecommunication services in Brazil and internationally. The company offers fixed telephony services; domestic and international long-distance services; and maintenance and repair services. It also provides call center and telemarketing, Internet, network, and Wi-Fi Internet services; and financial, and payment and credit system services, as well as consulting services. In addition, it engages in the investment management activities. The company was formerly known as Brasil Telecom S.A. and changed its name to Oi S.A. in February 2012. Oi S.A. was founded in 1998 and is headquartered in Rio de Janeiro, Brazil.