Reviewing eGain (NASDAQ:EGAN) and Lottery.com (NASDAQ:LTRY)

eGain (NASDAQ:EGAN) and Lottery.com (NASDAQ:LTRY) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Institutional & Insider Ownership

53.9% of eGain shares are held by institutional investors. Comparatively, 7.7% of Lottery.com shares are held by institutional investors. 34.3% of eGain shares are held by insiders. Comparatively, 19.9% of Lottery.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares eGain and Lottery.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eGain	8.38%	12.28%	6.27%
Lottery.com	-505.07%	-74.33%	-43.74%

Volatility and Risk

eGain has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Lottery.com has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Valuation & Earnings

This table compares eGain and Lottery.com”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eGain	$92.80 million	1.57	$7.78 million	$0.28	17.43
Lottery.com	$5.72 million	0.41	-$25.47 million	($9.82)	-0.05

eGain has higher revenue and earnings than Lottery.com. Lottery.com is trading at a lower price-to-earnings ratio than eGain, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for eGain and Lottery.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eGain	0	1	1	0	2.50
Lottery.com	0	0	0	0	N/A

eGain currently has a consensus target price of $9.50, suggesting a potential upside of 94.67%. Given eGain’s higher possible upside, analysts clearly believe eGain is more favorable than Lottery.com.

Summary

eGain beats Lottery.com on 12 of the 13 factors compared between the two stocks.

About eGain

eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.

About Lottery.com

Lottery.com Inc., a digital publisher, provides lottery data results, jackpots, results, and other data. The company delivers daily results of approximately 800 domestic and international lottery games from 40 countries, including the United States, Canada, and the United Kingdom to 400 digital publishers and media organizations. Lottery.com Inc. is headquartered in Spicewood, Texas.