Marin Software vs. E2open Parent: A Clash of Small-Cap Tech Stocks

When it comes to small-cap tech stocks, Marin Software (NASDAQ:MRIN) and E2open Parent (NYSE:ETWO) are two companies that often find themselves in the spotlight. Both these firms operate in the computer and technology sector, but which one provides a better investment opportunity? Let’s dive deeper into their respective strengths and evaluate their potential.

Institutional and Insider Ownership:
Marin Software sees 10.1% of its shares held by institutional investors, signaling confidence from hedge funds and money managers. On the other hand, E2open Parent has 5.8% insider ownership, while 6.1% of Marin Software shares are held by insiders. Strong institutional ownership indicates long-term growth prospects for a stock.

Analyst Ratings:
According to recent ratings reported by MarketBeat.com, E2open Parent has garnered a consensus price target of $4.29, suggesting a potential upside of 5.30%. This puts E2open Parent in a more favorable position compared to Marin Software.

Earnings & Valuation:
In terms of gross revenue, Marin Software lags behind E2open Parent with $20.02 million versus $652.22 million, respectively. However, Marin Software manages to outshine its competitor in terms of earnings per share. Additionally, E2open Parent offers a lower price-to-earnings ratio, making it a more affordable stock.

Volatility and Risk:
Both E2open Parent and Marin Software exhibit similar levels of volatility, indicated by their beta of 0.98. This means their stock prices are 2% less volatile than the S&P 500, providing a relatively stable investment option.

Profitability:
While both companies struggle with negative net margins, Marin Software surpasses E2open Parent in terms of return on equity and return on assets. E2open Parent, with a return on equity of 3.21% and return on assets of 1.90%, falls short of Marin Software’s -77.88% and -58.90%, respectively.

In summary, Marin Software prevails over E2open Parent on six out of eleven factors analyzed. However, it is crucial to conduct thorough due diligence before making any investment decisions. Both companies play key roles in the tech industry, with E2open Parent providing supply chain management solutions and Marin Software offering enterprise marketing software. The ultimate choice depends on an investor’s risk appetite and long-term goals.

FAQ Section:

1. Who are Marin Software (NASDAQ:MRIN) and E2open Parent (NYSE:ETWO)?
– Marin Software and E2open Parent are two companies operating in the computer and technology sector.

2. What is the institutional and insider ownership of these companies?
– Marin Software has 10.1% of its shares held by institutional investors, indicating confidence from hedge funds and money managers. E2open Parent has 5.8% insider ownership.

3. What are the analyst ratings for these companies?
– According to MarketBeat.com, E2open Parent has a consensus price target of $4.29, suggesting a potential upside of 5.30%.

4. How do Marin Software and E2open Parent compare in terms of earnings and valuation?
– Marin Software has lower gross revenue ($20.02 million) compared to E2open Parent ($652.22 million), but it outshines E2open Parent in terms of earnings per share. E2open Parent also offers a lower price-to-earnings ratio, making it a more affordable stock.

5. Are both companies equally volatile and risky?
– Both companies exhibit similar levels of volatility, indicated by their beta of 0.98. This means their stock prices are 2% less volatile than the S&P 500.

6. Which company is more profitable?
– Although both companies struggle with negative net margins, Marin Software surpasses E2open Parent in terms of return on equity and return on assets.

Key Terms/Jargon:
– Small-cap tech stocks: Stocks belonging to technology companies with relatively small market capitalization.
– Institutional investors: Companies, organizations, or entities that invest in stocks on behalf of their clients.
– Insider ownership: The percentage of shares held by individuals within the company.
– Price target: The predicted future price of a stock.
– Earnings per share: A company’s profit divided by its outstanding shares of common stock.
– Price-to-earnings ratio: The ratio of a company’s current stock price to its earnings per share, used to assess its valuation.
– Beta: A measure of a stock’s volatility compared to the overall market.
– Return on equity: A financial ratio that measures a company’s profitability relative to the shareholders’ equity.
– Return on assets: A financial ratio that measures a company’s profitability relative to its total assets.

Suggested Related Links:
Marinetraffic
E2open
NASDAQ 100