LivePerson (NASDAQ:LPSN – Get Free Report) and Gloo (NASDAQ:GLOO – Get Free Report) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares LivePerson and Gloo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LivePerson | -51.89% | N/A | -8.39% |
| Gloo | -81.35% | -1,637.91% | -41.56% |
Earnings & Valuation
This table compares LivePerson and Gloo”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LivePerson | $228.89 million | 0.17 | -$67.23 million | ($13.74) | -0.23 |
| Gloo | $154.29 million | 1.78 | -$157.13 million | ($7.31) | -0.41 |
LivePerson has higher revenue and earnings than Gloo. Gloo is trading at a lower price-to-earnings ratio than LivePerson, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for LivePerson and Gloo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LivePerson | 1 | 0 | 0 | 0 | 1.00 |
| Gloo | 1 | 0 | 5 | 0 | 2.67 |
Gloo has a consensus price target of $12.00, indicating a potential upside of 299.33%. Given Gloo’s stronger consensus rating and higher possible upside, analysts plainly believe Gloo is more favorable than LivePerson.
Institutional and Insider Ownership
79.8% of LivePerson shares are owned by institutional investors. 2.0% of LivePerson shares are owned by company insiders. Comparatively, 45.2% of Gloo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
LivePerson beats Gloo on 7 of the 13 factors compared between the two stocks.
About LivePerson
LivePerson, Inc. provides conversational artificial intelligence and customer engagement solutions for businesses. Its platform enables companies to communicate with customers through digital messaging, chat, voice and other conversational channels, with the goal of supporting customer service, sales and marketing activities. The company’s offerings include tools for managing customer conversations, automating interactions with artificial intelligence and connecting consumers with human agents when needed.
About Gloo
Gloo is a technology company focused on serving organizations in the faith and well-being sectors. Its platform connects churches, ministries, nonprofits and other organizations with tools and resources to engage people and support their work. The company offers technology and services designed to help organizations communicate with their communities, build relationships and coordinate outreach. Gloo describes its broader mission as supporting human flourishing through connections among individuals and organizations.
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