Bridgeline Digital (NASDAQ:BLIN) & Crexendo (NASDAQ:CXDO) Head to Head Survey
by Sarita Garza · The Markets DailyBridgeline Digital (NASDAQ:BLIN – Get Free Report) and Crexendo (NASDAQ:CXDO – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Insider and Institutional Ownership
15.1% of Bridgeline Digital shares are owned by institutional investors. Comparatively, 9.5% of Crexendo shares are owned by institutional investors. 23.5% of Bridgeline Digital shares are owned by insiders. Comparatively, 47.2% of Crexendo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Bridgeline Digital and Crexendo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bridgeline Digital | -10.75% | -17.46% | -10.69% |
| Crexendo | 6.15% | 13.84% | 11.21% |
Valuation and Earnings
This table compares Bridgeline Digital and Crexendo”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bridgeline Digital | $15.38 million | 0.95 | -$2.52 million | ($0.15) | -7.73 |
| Crexendo | $68.17 million | 3.44 | $5.07 million | $0.15 | 48.20 |
Crexendo has higher revenue and earnings than Bridgeline Digital. Bridgeline Digital is trading at a lower price-to-earnings ratio than Crexendo, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Bridgeline Digital has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Bridgeline Digital and Crexendo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bridgeline Digital | 1 | 1 | 1 | 0 | 2.00 |
| Crexendo | 0 | 1 | 4 | 0 | 2.80 |
Bridgeline Digital currently has a consensus target price of $4.62, indicating a potential upside of 298.28%. Crexendo has a consensus target price of $10.40, indicating a potential upside of 43.85%. Given Bridgeline Digital’s higher possible upside, equities research analysts plainly believe Bridgeline Digital is more favorable than Crexendo.
Summary
Crexendo beats Bridgeline Digital on 12 of the 14 factors compared between the two stocks.
About Bridgeline Digital
Bridgeline Digital, Inc. operates as a marketing technology company in the United States, Canada, and internationally. The company offers HawkSearch, a site search, recommendation, and personalization application for marketers, merchandisers, and developers; Celebros Search, a commerce-oriented site search product that provides natural language processing with artificial intelligence; and Woorank, a Search Engine Optimization (SEO) audit tool that generates an instant performance audit of the site's technical, on-page, and off-page SEO. It also provides Bridgeline TruPresence, a web content management and eCommerce platform to support the needs of multi-unit organizations and franchises; Bridgeline Unbound, a technology suite that empower marketers to easily manage their digital experiences and create personalized customer journeys; and OrchestraCMS, a digital experience platform that enables development of custom solutions, third-party integrations, and delivery of digital transformation initiatives on the Salesforce platform. In addition, the company offers digital engagement services comprising digital strategy, web design and web development, usability engineering, information architecture, and SEO, as well as hosting services. It serves vertical markets, such as industrial distributors and wholesalers, franchises and enterprises, manufacturers, eCommerce retailers, health services and life sciences, technology, credit unions and banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was incorporated in 2000 and is based in Woburn, Massachusetts.
About Crexendo
Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.