Brightcove (NASDAQ: BCOV) and Net Element International (NASDAQ:NETE) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Insider and Institutional Ownership
62.1% of Brightcove shares are owned by institutional investors. Comparatively, 3.7% of Net Element International shares are owned by institutional investors. 4.4% of Brightcove shares are owned by insiders. Comparatively, 27.9% of Net Element International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Brightcove and Net Element International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brightcove||$155.91 million||1.73||-$19.51 million||($0.48)||-16.08|
|Net Element International||$60.06 million||0.60||-$9.91 million||($5.04)||-1.86|
Net Element International has lower revenue, but higher earnings than Brightcove. Brightcove is trading at a lower price-to-earnings ratio than Net Element International, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Brightcove has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Net Element International has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Brightcove and Net Element International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Net Element International||0||0||0||0||N/A|
Brightcove currently has a consensus price target of $8.42, suggesting a potential upside of 9.02%. Given Brightcove’s higher possible upside, equities research analysts plainly believe Brightcove is more favorable than Net Element International.
This table compares Brightcove and Net Element International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Net Element International||-16.50%||-181.44%||-38.14%|
Brightcove beats Net Element International on 10 of the 12 factors compared between the two stocks.
Brightcove Company Profile
Brightcove Inc. provides cloud-based services for video. The company offers Video Cloud, an online video platform that enables its customers to publish and distribute video to Internet-connected devices. Its Video Cloud platform offers various features and functionalities, such as uploading and encoding, content management, video player technology, multi-platform video experiences, live video streaming, distribution and syndication, social media, advertising and monetization, and analytics, as well as APIs, SDKs, and developer resources. The company also provides Zencoder, a cloud-based video encoding service with various features and functionalities, including file support, quality and control, speed and reliability, platform and security, and account and integration; SSAI, a cloud-based ad insertion and video stitching service; and Player, a cloud-based service for creating and managing video player experiences. In addition, it offers Video Marketing Suite, a suite of video technologies designed to address the needs of marketers to drive awareness, engagement, and conversion; OTT Flow, a service for media companies and content owners; and Enterprise video suite, an enterprise-class platform for internal communications, employee training, live streaming, marketing, and e-commerce videos. Further, the company provides account management, professional services, support, and online and onsite training services. Brightcove Inc. offers its products to media companies, broadcasters, publishers, brands, and corporations; and governments, educational institutions, and non-profit organizations through direct sales, referral partners, channel partners, and resellers in North America, Europe, Japan, the Asia Pacific, and internationally, as well as sells its products online. The company was formerly known as Video Marketplace, Inc. and changed its name to Brightcove Inc. in March 2005. Brightcove Inc. was founded in 2004 and is headquartered in Boston, Massachusetts.
Net Element International Company Profile
Net Element, Inc. operates as a financial technology and value-added solutions company worldwide. It operates in three segments: North America Transaction Solutions, Mobile Solutions, and Online Solutions. The North America Transaction Solutions segment provides technology and services that businesses require to accept cashless transaction for retail card-present, e-commerce, or card-not-present mail order/telephone order transactions; and Aptito, a cloud-based point of sale (POS) platform, which includes hospitality, mobile POS, and small to medium sized business retail POS applications, as well as offers mobile payment and merchant back office reporting services, and merchant performance analytical tools. The Mobile Solutions segment provides an integrated mobile billing and mobile commerce solution for digital merchants, such as social networks, game developers, online magazines, mobile applications, and digital media operators to monetize their content in a mobile environment. It also offers various mobile payment solutions for Web services and mobile applications. This segment enables mobile users to pay for purchases through mobile devices, interactive devices, or Web without a credit card or a bank account. The Online Solutions segment operates PayOnline, a software-as-a-service suite of solutions for electronic and mobile commerce gateway and payment processing platform that facilitate payment acceptance and processing through point-to-point encryption and tokenization solutions. It operates in North America, the Russian Federation, and the Commonwealth of Independent States. The company was formerly known as Net Element International, Inc. and changed its name to Net Element, Inc. in December 2013. Net Element, Inc. was founded in 2004 and is headquartered in North Miami Beach, Florida.
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