SciQuest (NASDAQ: SQI) and EnerNOC (NASDAQ:ENOC) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

This table compares SciQuest and EnerNOC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SciQuest 3.93% 2.23% 1.59%
EnerNOC -66.80% -160.15% -42.76%

Institutional and Insider Ownership

49.7% of EnerNOC shares are held by institutional investors. 13.4% of EnerNOC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for SciQuest and EnerNOC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SciQuest 0 0 0 0 N/A
EnerNOC 0 4 0 0 2.00

EnerNOC has a consensus price target of $8.56, indicating a potential upside of 11.85%. Given EnerNOC’s higher probable upside, analysts clearly believe EnerNOC is more favorable than SciQuest.

Earnings & Valuation

This table compares SciQuest and EnerNOC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SciQuest N/A N/A N/A $0.11 161.36
EnerNOC N/A N/A N/A ($1.50) -5.10

EnerNOC is trading at a lower price-to-earnings ratio than SciQuest, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

SciQuest has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, EnerNOC has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.

Summary

SciQuest beats EnerNOC on 6 of the 9 factors compared between the two stocks.

About SciQuest

SciQuest, Inc. is a United States-based public provider of spend management solutions. The Company’s offers a range of solutions, such as Spend Director, Spend Radar, Sourcing Director, Advanced Sourcing Optimizer, Total Contract Manager, Total Supplier Manager, Enterprise Reagent Manager, Accounts Payable Director, Supplier Network and Portfolio Savings Manager. Its Spend Director is an e-procurement software, which allows users’ to integrate and automate processes, suppliers, compliance and workflows. Its Portfolio Savings Manager is a cloud-based savings management software that integrates project forecasting, initiative approval workflows and real-time savings. Its chemical inventory management software, Enterprise Reagent Manager (ERM), allows scientific staff in the organization to find, source and track commercial and proprietary chemicals, reagents and lab supplies. Its Total Contract Manager is a Contract Lifecycle Management solution that offers real-time updates.

About EnerNOC

EnerNOC, Inc. is a provider of energy intelligence software (EIS) and demand response solutions. The Company’s EIS provides enterprise solutions, utility solutions and energy procurement solutions. The Company’s EIS offers enterprise customers with a Software-as-a-Service (SaaS) solutions with various areas of functionalities, including energy cost visualization, budgets, forecasts and accruals; project tracking, and demand management. Its EIS provides its utility customers with a SaaS-based customer engagement platform, which collects and processes data and enables its utility customers to provide personalized communication and recommendations to their customers. Its EIS includes an energy procurement platform that helps its enterprise and utility customers. Its procurement platform offers its enterprise and utility customers with features, such as energy contracts management. Its technology includes over two components: its EIS platform and Network Operations Center (NOC).

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