Head-To-Head Contrast: ON24 (NYSE:ONTF) and American Software (NASDAQ:AMSWA)

ON24 (NYSE:ONTFGet Free Report) and American Software (NASDAQ:AMSWAGet Free Report) 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 valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ON24 and American Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ON24 0 2 0 0 2.00
American Software 0 0 1 0 3.00

ON24 currently has a consensus price target of $8.00, suggesting a potential upside of 0.82%. American Software has a consensus price target of $18.00, suggesting a potential upside of 64.23%. Given American Software’s stronger consensus rating and higher probable upside, analysts clearly believe American Software is more favorable than ON24.

Profitability

This table compares ON24 and American Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ON24 -31.61% -17.03% -11.97%
American Software 9.78% 7.94% 5.74%

Insider & Institutional Ownership

77.2% of ON24 shares are owned by institutional investors. Comparatively, 79.9% of American Software shares are owned by institutional investors. 27.3% of ON24 shares are owned by insiders. Comparatively, 11.4% of American Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares ON24 and American Software’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ON24 $190.87 million 1.73 -$58.21 million ($1.16) -6.84
American Software $123.66 million 3.03 $10.42 million $0.33 33.21

American Software has lower revenue, but higher earnings than ON24. ON24 is trading at a lower price-to-earnings ratio than American Software, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

ON24 has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, American Software has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Summary

American Software beats ON24 on 12 of the 14 factors compared between the two stocks.

About ON24

(Get Free Report)

ON24, Inc. provides a cloud-based digital engagement platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide. The company provides ON24 Experience products, such as ON24 Elite, a live and interactive webinar experience; ON24 Breakouts, a live breakout room experience that facilitates networking, collaboration, and interactivity between users; ON24 Forums, a live and interactive experience, which facilitates video-to-video interaction between presenters and audiences; ON24 Go Live, a live and interactive video event experience that enables presenters and attendees to engage face-to-face in real-time; and ON24 Virtual Confrence, a live and large scale managed virtual event experience. It also offers ON24 Engagement Hub, a multimedia content experience; ON24 Target, a personalized and curated landing page experience; ON24 Intelligence, an analytics backbone that captures first-person data to power the insights, benchmarking, reporting, and artificial intelligence and machine learning engine; ON24 Connect, an ecosystem of third-party application integrations; and ON24 Services and Platform Support, a portfolio of professional services that provide consulting and support for product and platform adoption. In addition, the company offers professional services, such as experience management, monitoring, premium support, and implementation and other services. It sells its products through direct sales. The company serves technology, financial services, healthcare, industrial and manufacturing, professional services, and business-to-business information service companies. ON24, Inc. was formerly known as NewsDirect, Inc. and changed its name to ON24, Inc. in December 1998. The company was incorporated in 1998 and is headquartered in San Francisco, California.

About American Software

(Get Free Report)

American Software, Inc. develops, markets, and supports a range of computer business application software products in the United States and internationally. It operates through Supply Chain Management (SCM), Information Technology Consulting (IT Consulting), and Other segments. The SCM segment leverages a single platform spanning eight supply chain process areas including product, demand, inventory, network optimization supply, deploy aligned with integrated business planning and supply chain data management. The IT Consulting segment offers IT staffing and consulting services firm. Other segment provides purchasing and materials management, client order processing, financial, e-commerce, and traditional manufacturing software and services. In addition, it offers ongoing support and maintenance services; cloud hosting and managed services; and implementation and training services. The company markets its products through direct and indirect sales channels to the apparel and other soft goods, food and beverage, consumer packaged goods, consumer durable goods, wholesale distribution, specialty chemicals, and other process manufacturing industries. American Software, Inc. was incorporated in 1970 and is headquartered in Atlanta, Georgia.

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