Critical Analysis: Endurance International Group Holdings (EIGI) & Unisys Corporation (UIS)

Endurance International Group Holdings (NASDAQ: EIGI) and Unisys Corporation (NYSE:UIS) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Risk & Volatility

Endurance International Group Holdings has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, Unisys Corporation has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.

Valuation & Earnings

This table compares Endurance International Group Holdings and Unisys Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Endurance International Group Holdings $1.11 billion 1.02 -$72.83 million ($1.10) -7.18
Unisys Corporation $2.82 billion 0.14 -$47.70 million ($2.31) -3.35

Unisys Corporation has higher revenue and earnings than Endurance International Group Holdings. Endurance International Group Holdings is trading at a lower price-to-earnings ratio than Unisys Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Endurance International Group Holdings and Unisys Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endurance International Group Holdings 3 2 0 0 1.40
Unisys Corporation 0 1 1 0 2.50

Endurance International Group Holdings currently has a consensus price target of $7.70, suggesting a potential downside of 2.53%. Unisys Corporation has a consensus price target of $12.00, suggesting a potential upside of 54.84%. Given Unisys Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Unisys Corporation is more favorable than Endurance International Group Holdings.

Profitability

This table compares Endurance International Group Holdings and Unisys Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endurance International Group Holdings -12.74% -161.36% -5.51%
Unisys Corporation -4.30% -5.32% 4.06%

Institutional and Insider Ownership

86.6% of Endurance International Group Holdings shares are held by institutional investors. 58.2% of Endurance International Group Holdings shares are held by company insiders. Comparatively, 1.4% of Unisys Corporation shares are held by company 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.

Summary

Unisys Corporation beats Endurance International Group Holdings on 8 of the 13 factors compared between the two stocks.

Endurance International Group Holdings Company Profile

Endurance International Group Holdings, Inc. (Endurance) is a provider of cloud-based platform solutions designed to help small and medium-sized businesses (SMBs) succeed online. The Company operates through two segments: Web Presence and Email Marketing. The Company’s Web presence segment consists of Web hosting, domains and the related products and services. Its e-mail marketing segment consists of the products and services offered by Constant Contact, principally e-mail marketing, including event marketing, survey tools and SinglePlatform. The Company’s products focuses on Web hosting and other Web presence solutions, such as domains, and it also offers security, site backup, domains, search engine optimization (SEO) and search engine marketing (SEM), Google Adwords, mobile solutions, social media enablement, Website analytics, e-mail marketing and productivity and e-commerce tools, among others. It conducts operations in the United States, Brazil, India, and the Netherlands.

Unisys Corporation Company Profile

Unisys Corporation (Unisys) is an information technology (IT) company. The Company operates through two segments: Services and Technology. The Company offers services, which include cloud and infrastructure services, application services and business process outsourcing services. In technology segment, the Company designs and develops software, servers and related products. The Company provides a range of data center, infrastructure management and cloud computing offerings to help clients virtualize and automate their data-center environments. Its technology offerings include ClearPath Forward software operating system, the Unisys Stealth family of security software and industry-focused software such as Digital Investigator, middleware and servers. Unisys Stealth consists of six solutions: Stealth(core), Stealth(analytics), Stealth(aware), Stealth(cloud), Stealth(identity) and Stealth(mobile). Digital Investigator is a browser-based application for total information management.

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