Contrasting KLDiscovery (OTCMKTS:KLDI) & Agora (NASDAQ:API)

Agora (NASDAQ:API) and KLDiscovery (OTCMKTS:KLDI) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

40.4% of Agora shares are owned by institutional investors. Comparatively, 20.4% of KLDiscovery shares are owned by institutional investors. 14.6% of Agora shares are owned by insiders. Comparatively, 31.6% of KLDiscovery shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Agora and KLDiscovery”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agora	$133.26 million	2.73	-$42.73 million	$0.04	97.50
KLDiscovery	$345.80 million	0.00	-$34.81 million	($1.32)	N/A

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

Profitability

This table compares Agora and KLDiscovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agora	3.47%	0.84%	0.68%
KLDiscovery	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Agora and KLDiscovery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agora	1	0	1	0	2.00
KLDiscovery	0	0	0	0	0.00

Agora presently has a consensus target price of $6.00, indicating a potential upside of 53.85%. Given Agora’s stronger consensus rating and higher possible upside, equities analysts clearly believe Agora is more favorable than KLDiscovery.

Summary

Agora beats KLDiscovery on 8 of the 11 factors compared between the two stocks.

About Agora

Agora, Inc. operates in real-time engagement technology business in the People's Republic of China, the United States, and internationally. The company offers real-time engagement platform-as-a-services providing developers with application programming interfaces to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications. It also provides video and voice calling, interactive live and broadcast streaming, chat, signaling, and interactive whiteboard products; and extensions, such as analytics, recording, AI noise suppression, 3D spatial audio, real-time transcription, and extensions marketplace. In addition, the company offers Application Platforms, including Flexible Classroom, a low-code application Platform as a Service, which combines video, voice, chat, signaling, whiteboard and recording functionalities into an integrated cloud-based solution for education providers; and App Builder, a no-code application platform, designed for developers with little or no coding experience to build their own applications with video conference and live streaming functionalities. It operates through Agora and Shengwang brands. Agora, Inc. was incorporated in 2013 and is headquartered in Santa Clara, California.

About KLDiscovery

KLDiscovery Inc. provides eDiscovery, information governance, and data recovery solutions to corporations, law firms, insurance companies, and individuals worldwide. The company offers Nebula, an end-to-end eDiscovery solution that facilitates smarter ways to cull, process, review, and manage documents in an intuitive interface; Client Portal for consolidated visualizations and reporting for portfolio intelligence; KLD Processing, a proprietary processing application; ReadySuite to perform extensive QC on a production, normalize inbound submissions, or spot check the work of a colleague or supplier; Relativity for relativity enhancements and state-of-the-art HIVE infrastructure; Nebula Processing to process data with a higher degree of quality; and Nebula AI, a technology assisted review tool combined with a deep bench of experts, as well as managed services, remote document review, and managed document review services. It also provides computer forensics, ransomware data recovery, remote collection manager, data recovery, and data collection services. In addition, the company offers Nebula Archive, an advanced archiving solution for modern enterprise data management needs at scale; Nebula Intelligent Archive, a digital communications compliance platform with machine learning and analytics; and Office 365 Migration and Management, as well as information governance and advisory services. Further, it provides Ontrack EasyRecovery that allows clients to perform precise file recovery of data lost through deletion, reformatting, and various other data loss scenarios; Ontrack PowerControls, a granular restore software product; email extraction, tape solutions, and data destruction solutions; and professional services. KLDiscovery Inc. was founded in 1985 and is headquartered in Eden Prairie, Minnesota.