Critical Review: Betawave (OTCMKTS:BWAV) versus Upwork (NASDAQ:UPWK)

Upwork (NASDAQ:UPWK) and Betawave (OTCMKTS:BWAV) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

Upwork has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Betawave has a beta of -7.39, meaning that its stock price is 839% less volatile than the S&P 500.

Earnings and Valuation

This table compares Upwork and Betawave”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Upwork	$761.78 million	2.74	$46.89 million	$0.63	24.83
Betawave	N/A	N/A	N/A	N/A	N/A

Upwork has higher revenue and earnings than Betawave.

Profitability

This table compares Upwork and Betawave’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Upwork	11.26%	22.84%	8.35%
Betawave	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and price targets for Upwork and Betawave, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Upwork	0	3	8	0	2.73
Betawave	0	0	0	0	0.00

Upwork presently has a consensus price target of $18.36, indicating a potential upside of 17.41%. Given Upwork’s stronger consensus rating and higher possible upside, analysts clearly believe Upwork is more favorable than Betawave.

Institutional and Insider Ownership

77.7% of Upwork shares are owned by institutional investors. 7.6% of Upwork shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Upwork beats Betawave on 10 of the 10 factors compared between the two stocks.

About Upwork

Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company’s work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Payroll and Upwork Enterprise, as well as managed and escrow services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.

About Betawave

Betawave Corporation provides online advertising services for a portfolio of websites. It delivers advertising to audiences of highly-engaged users. The company has a network of websites in three online categories: immersive casual gaming, virtual world, and social play and entertainment. It specializes in helping brand marketers reach the attentive audiences on various Web sites through ad formats. It serves advertisers in various categories, including consumer packaged goods, entertainment, consumer electronics and software, and retail. The company's advertising in the publisher sites includes direct sales category comprising IAB graphical advertising and rich media/immersive advertising; and remnant inventory category, which are advertising inventory on a website that is not sold directly to an advertiser. It sells its inventory and marketing services through a sales and marketing organization in the United States. The company was formerly known as GoFish Corporation and changed its name to Betawave Corporation in January 2009. Betawave Corporation was incorporated in 2003 and is based in San Francisco, California.