Brightcove (NASDAQ: BCOV) and Bazaarvoice (NASDAQ:BV) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Brightcove and Bazaarvoice, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brightcove 0 1 2 0 2.67
Bazaarvoice 0 4 1 0 2.20

Brightcove currently has a consensus target price of $8.42, suggesting a potential upside of 16.09%. Bazaarvoice has a consensus target price of $5.90, suggesting a potential upside of 7.76%. Given Brightcove’s stronger consensus rating and higher probable upside, research analysts plainly believe Brightcove is more favorable than Bazaarvoice.

Insider & Institutional Ownership

62.4% of Brightcove shares are owned by institutional investors. Comparatively, 77.9% of Bazaarvoice shares are owned by institutional investors. 12.7% of Brightcove shares are owned by insiders. Comparatively, 5.6% of Bazaarvoice shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Brightcove has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, Bazaarvoice has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Profitability

This table compares Brightcove and Bazaarvoice’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brightcove -14.58% -25.11% -13.88%
Bazaarvoice -4.40% -4.42% -2.64%

Valuation & Earnings

This table compares Brightcove and Bazaarvoice’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brightcove $150.27 million 1.67 -$9.98 million ($0.66) -10.98
Bazaarvoice $201.24 million 2.34 -$15.94 million ($0.11) -49.77

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

Summary

Bazaarvoice beats Brightcove on 7 of the 13 factors compared between the two stocks.

Brightcove Company Profile

Brightcove Inc. is a global provider of cloud-based services for video. The Company’s products and services include Brightcove Video Cloud (Video Cloud), Brightcove Zencoder (Zencoder), Brightcove Once (Once), Brightcove Perform (Perform), Brightcove Video Marketing Suite (Video Marketing Suite), Brightcove Lift (Lift), Brightcove OTT Flow (OTT Flow) and Brightcove Enterprise Video Suite (Enterprise Video Suite), among others. Video Cloud is an online video platform. Video Cloud enables its customers to publish and distribute video to Internet-connected devices. Zencoder is a cloud-based video encoding service. Once is a cloud-based advertisement insertion and video stitching service. Perform is a cloud-based service for creating and managing video player experiences. Video Marketing Suite is a suite of video technologies designed to address the needs of marketers to drive awareness, engagement and conversion.

Bazaarvoice Company Profile

Bazaarvoice, Inc. offers solutions and services that allow its retailer and brand clients to understand that consumer voice and the role it plays in influencing purchasing decisions, both online and offline. The Company’s solutions collect, curate and display consumer-generated content, including ratings and reviews, questions and answers, customer stories, and social posts, photos and videos. This content is syndicated and distributed across its clients’ marketing channels. Its solutions, which the Company provides primarily through a software-as-a-service (SaaS) platform, enable the clients to capture and display consumer-generated content; syndicate that consumer-generated content into its network of brand and retail clients; understand consumer behavior, and monetize the value of that content through targeted advertising based on online and offline shopping behavior. The Company’s geographical segments include Americas, EMEA and Other.

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