Financial Survey: Connecture (CNXR) & Rightside Group (NAME)

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Connecture (NASDAQ: CNXR) and Rightside Group (NASDAQ:NAME) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Profitability

This table compares Connecture and Rightside Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Connecture -21.91% N/A -20.45%
Rightside Group -39.04% -15.14% -8.53%

Institutional and Insider Ownership

38.8% of Connecture shares are owned by institutional investors. Comparatively, 68.4% of Rightside Group shares are owned by institutional investors. 58.1% of Connecture shares are owned by insiders. Comparatively, 2.4% of Rightside Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Connecture and Rightside Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Connecture $82.18 million 0.19 -$8.20 million ($1.02) -0.66
Rightside Group N/A N/A N/A $2.11 5.03

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

Analyst Ratings

This is a summary of recent ratings for Connecture and Rightside Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Rightside Group 0 1 0 0 2.00

Rightside Group has a consensus price target of $10.60, indicating a potential downside of 0.09%. Given Rightside Group’s higher possible upside, analysts clearly believe Rightside Group is more favorable than Connecture.

Risk & Volatility

Connecture has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500. Comparatively, Rightside Group has a beta of -0.76, meaning that its share price is 176% less volatile than the S&P 500.

Summary

Connecture beats Rightside Group on 5 of the 9 factors compared between the two stocks.

Connecture Company Profile

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

Rightside Group Company Profile

Rightside Group, Ltd. is a provider of domain name services that enable businesses and consumers to find, establish and maintain their digital address. The Company is a registrar, offering domain name registration and other related services to resellers and domain name registrants. It provides infrastructure services through its eNom brand. It has over 16.5 million domain names under management. It has a portfolio of over 40 generic Top Level Domains (gTLDs) acquired through Internet Corporation for Assigned Names and Numbers (ICANN)’s expansion of new gTLDs. It has launched all of its gTLDs, including .NEWS, .LIVE, and .FAMILY, into general availability in the marketplace. Its registry services business builds a distribution network of over 125 ICANN accredited registrars, including GoDaddy, eNom and Name.com, as well as other complementary distribution partners, such as Website builders and e-mail service providers, that offer its gTLD domain names to businesses and consumers.

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