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

Analyst Ratings

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

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

Rightside Group presently has a consensus target price of $10.60, suggesting a potential downside of 0.09%. Given Rightside Group’s higher probable upside, equities research analysts plainly believe Rightside Group is more favorable than Connecture.

Profitability

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

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rightside Group N/A N/A N/A $2.11 5.03
Connecture $82.18 million 0.20 -$8.20 million ($1.02) -0.70

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.

Risk & Volatility

Rightside Group has a beta of -0.76, suggesting that its share price is 176% less volatile than the S&P 500. Comparatively, Connecture has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500.

Institutional & Insider Ownership

68.4% of Rightside Group shares are held by institutional investors. Comparatively, 38.8% of Connecture shares are held by institutional investors. 2.4% of Rightside Group shares are held by insiders. Comparatively, 58.1% of Connecture shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

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

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.

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.

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