Financial Analysis: Data Storage (NASDAQ:DTST) versus E2open Parent (NYSE:ETWO)

Data Storage (NASDAQ:DTST) and E2open Parent (NYSE:ETWO) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Institutional and Insider Ownership

11.6% of Data Storage shares are held by institutional investors. 42.2% of Data Storage shares are held by company insiders. Comparatively, 4.7% of E2open Parent shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Data Storage and E2open Parent, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data Storage	0	0	0	0	0.00
E2open Parent	1	3	0	0	1.75

E2open Parent has a consensus target price of $3.28, suggesting a potential upside of 16.55%. Given E2open Parent’s stronger consensus rating and higher probable upside, analysts clearly believe E2open Parent is more favorable than Data Storage.

Volatility and Risk

Data Storage has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, E2open Parent has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Earnings and Valuation

This table compares Data Storage and E2open Parent”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data Storage	$24.96 million	1.17	$380,000.00	$0.02	208.50
E2open Parent	$634.55 million	1.52	-$1.07 billion	($1.49)	-1.89

Data Storage has higher earnings, but lower revenue than E2open Parent. E2open Parent is trading at a lower price-to-earnings ratio than Data Storage, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Data Storage and E2open Parent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Data Storage	0.64%	0.79%	0.66%
E2open Parent	-74.63%	4.38%	2.12%

Summary

E2open Parent beats Data Storage on 7 of the 13 factors compared between the two stocks.

About Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.

About E2open Parent

E2open Parent Holdings, Inc. provides cloud-based and end-to-end supply chain management and orchestration SaaS platform in the Americas, Europe, and the Asia Pacific. Its SaaS platform includes various key strategic and operational areas, including omni-channel, demand sensing, supply planning, global trade management, transportation and logistics and manufacturing and supply management. The company's software combines networks, data, and applications to provide a deeply embedded and mission-critical platform that allows its clients to optimize their channel and supply chains. It serves consumer goods, food and beverage, manufacturing, retail, industrial and automotive, aerospace and defense, technology and transportation, and other industries. The company was incorporated in 2020 and is headquartered in Austin, Texas.