Reviewing eGain Corporation (EGAN)’s and Simulations Plus Inc. (NASDAQ:SLP)’s results

As Business Software & Services companies, eGain Corporation (NASDAQ:EGAN) and Simulations Plus Inc. (NASDAQ:SLP) are our subject to contrast. And more specifically their analyst recommendations, profitability, institutional ownership, risk, dividends, earnings and valuation.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
eGain Corporation 8 13.47 15.21M 0.16 49.21
Simulations Plus Inc. 33 4.09 12.52M 0.48 68.57

Table 1 highlights eGain Corporation and Simulations Plus Inc.’s top-line revenue, earnings per share (EPS) and valuation. Simulations Plus Inc. appears to has higher revenue and earnings than eGain Corporation. The business that is more affordable between the two has a lower price-to-earnings ratio. eGain Corporation’s currently lower price-to-earnings ratio means it is more affordable than Simulations Plus Inc.

Profitability

Table 2 represents eGain Corporation (NASDAQ:EGAN) and Simulations Plus Inc. (NASDAQ:SLP)’s return on assets, net margins and return on equity.

Net Margins Return on Equity Return on Assets
eGain Corporation 192,531,645.57% 27.2% 7.1%
Simulations Plus Inc. 38,299,174.06% 24.6% 19.5%

Risk and Volatility

A 0.64 beta means eGain Corporation’s volatility is 36.00% less than Standard & Poor’s 500’s volatility. Simulations Plus Inc.’s 135.00% less volatile than Standard & Poor’s 500 which is a result of the -0.35 beta.

Liquidity

The Current Ratio and Quick Ratio of eGain Corporation are 1.3 and 1.3 respectively. Its competitor Simulations Plus Inc.’s Current Ratio is 4.4 and its Quick Ratio is 4.4. Simulations Plus Inc. can pay off short and long-term obligations better than eGain Corporation.

Analyst Ratings

The Ratings and Recommendations for eGain Corporation and Simulations Plus Inc. are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
eGain Corporation 0 0 1 3.00
Simulations Plus Inc. 0 0 1 3.00

The upside potential is 89.63% for eGain Corporation with average price target of $15. Competitively Simulations Plus Inc. has a consensus price target of $40, with potential upside of 20.66%. The results provided earlier shows that eGain Corporation appears more favorable than Simulations Plus Inc., based on analyst view.

Institutional and Insider Ownership

Roughly 79.2% of eGain Corporation shares are owned by institutional investors while 46.6% of Simulations Plus Inc. are owned by institutional investors. Insiders owned roughly 1.4% of eGain Corporation’s shares. Comparatively, insiders own roughly 28.8% of Simulations Plus Inc.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
eGain Corporation 1.9% -3.18% -5.53% -3.42% 10.75% 18.34%
Simulations Plus Inc. -2.54% -1.24% 0.87% 21.67% 67.63% 63.67%

For the past year eGain Corporation was less bullish than Simulations Plus Inc.

Summary

Simulations Plus Inc. beats eGain Corporation on 9 of the 14 factors.

eGain Corporation provides cloud-based customer engagement software solutions worldwide. The company offers eGain software suite, including eGain Mobile for businesses to offer engagement options in the eGain suite to mobile users. It also provides Web applications comprising eGain Offers that helps businesses engage visitors on the company Website and Facebook fan pages; eGain Virtual Assistant that enables conversational automation to engage customers across digital touch points; eGain Cobrowse that enables phone and chat reps to show customers around the Website, help locate information, and hand-hold them during complex tasks; eGain Super Chat for Website visitors to conduct chats with agents; eGain ClickToCall provides Website visitors the ability to request a callback; and eGain SelfService to support customer self-service options. In addition, the company offers desktop applications consisting eGain Advisor Desktop, a desktop for customer service advisors in a digital world; eGain CallTrack call logging system; eGain Mail+Social, a application for processing inbound customer emails and providing email customer response; and eGain KnowledgeAgent, which empowers contact center agents with AI-powered knowledge management. Further, it eGain suite includes eGain Operational Analytics for businesses to monitor, measure, and manage their omnichannel contact center operation; eGain Secure Messaging that enables secure messaging for business with their customers; and eGain Notify, an application to deliver automatic reminders, alerts, and updates at various stages of the customer journey. Additionally, the company offers implementation, solution development, systems integration, and training services. It serves retail, telecommunications, financial services, insurance, outsourced services, technology, utilities, government, manufacturing, and consumer electronics industries. eGain Corporation was founded in 1997 and is headquartered in Sunnyvale, California.

Simulations Plus, Inc. develops and sells drug discovery and development software for mechanistic modeling and simulation. The company offers GastroPlus, which simulates the absorption, pharmacokinetics (PK), and pharmacodynamics of drugs administered to humans and animals; DDDPlus that simulates in vitro laboratory experiments, which measure the rate of dissolution of the drug and additives in a dosage form; and MembranePlus, which simulates laboratory experiments. It also provides PKPlus, a standalone program that provides the functionality needed by pharmaceutical industry scientists to perform the analyses and generate the outputs needed to satisfy regulatory agency requirements for NCA and compartmental PK modelling; ADMET Predictor, a chemistry-based computer program, which takes molecular structures as inputs and predicts their properties; and MedChem Designer, a molecule drawing program or sketcher that integrates with MedChem Studio and ADMET Predictor. In addition, it offers MedChem Studio, a software tool for data mining and designing new molecules; and KIWI, a cloud-based Web application, which organizes, processes, maintains, and communicates the volume of data and results generated by pharmacologists and scientists over the duration of a drug development program. Further, the company provides consulting services ranging from early drug discovery through preclinical and clinical trial data analysis, and for submissions to regulatory agencies; and population modeling and simulation contract research services for the pharmaceutical and biotechnology industries. Additionally, it offers pharmaceutical/chemistry software to pharmaceutical, biotechnology, agrochemical, and food companies. The company distributes its products and services worldwide. Simulations Plus, Inc. was founded in 1996 and is headquartered in Lancaster, California.