Confluent (NASDAQ:CFLT – Get Free Report) and eGain (NASDAQ:EGAN – Get Free Report) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Confluent and eGain’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Confluent | -42.70% | -37.78% | -12.81% |
| eGain | 9.34% | 13.83% | 7.12% |
Analyst Ratings
This is a breakdown of current recommendations for Confluent and eGain, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Confluent | 1 | 6 | 23 | 0 | 2.73 |
| eGain | 0 | 1 | 1 | 0 | 2.50 |
Insider and Institutional Ownership
78.1% of Confluent shares are owned by institutional investors. Comparatively, 53.9% of eGain shares are owned by institutional investors. 13.8% of Confluent shares are owned by insiders. Comparatively, 34.3% of eGain shares are owned 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.
Risk and Volatility
Confluent has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, eGain has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.
Earnings & Valuation
This table compares Confluent and eGain’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Confluent | $865.59 million | 7.32 | -$442.75 million | ($1.25) | -15.94 |
| eGain | $94.98 million | 2.08 | $2.11 million | $0.28 | 23.64 |
eGain has lower revenue, but higher earnings than Confluent. Confluent is trading at a lower price-to-earnings ratio than eGain, indicating that it is currently the more affordable of the two stocks.
About Confluent
Confluent, Inc. operates a data streaming platform in the United States and internationally. The company provides platforms that allow customers to connect their applications, systems, and data layers, such as Confluent Cloud, a managed cloud-native software-as-a-service; and Confluent Platform, an enterprise-grade self-managed software. It offers connectors for existing applications, and IT and cloud infrastructure; Apache Flink services that allows teams to create reusable data streams that can be delivered real-time; ksqlDB, a data-in-motion database that allows users to build data-in-motion applications using a few SQL statements; stream governance, a managed data governance suite that is designed for the intricacies of streaming data, which allows teams to accelerate data streaming initiatives without bypassing controls for risk management and regulatory compliance; and stream designer which builds streaming data pipelines visually. In addition, the company offers professional services comprising packaged and residency offerings; education offerings consisting of instructor-led and self-paced training and certification guidance, technical resources, and access to hands-on training and certification exams; and certification programs. It serves banking and financial services industries, as well as retail and e-commerce, manufacturing, automotive, communication service providers, gaming, public sector, insurance, and technology industries. The company was formerly known as Infinitem, Inc. and changed its name to Confluent, Inc. in September 2014. Confluent, Inc. was incorporated in 2014 and is headquartered in Mountain View, California.
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.
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