Analyzing E2open Parent (NYSE:ETWO) & Cheer (NASDAQ:CHR)

E2open Parent (NYSE:ETWO) and Cheer (NASDAQ:CHR) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation and Earnings

This table compares E2open Parent and Cheer”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E2open Parent	$634.55 million	2.41	-$1.07 billion	($2.59)	-1.73
Cheer	$152.33 million	0.17	$30.48 million	N/A	N/A

Cheer has lower revenue, but higher earnings than E2open Parent.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
E2open Parent	-125.24%	3.36%	1.84%
Cheer	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for E2open Parent and Cheer, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E2open Parent	0	4	0	0	2.00
Cheer	0	0	0	0	N/A

E2open Parent currently has a consensus target price of $4.20, indicating a potential downside of 6.25%. Given E2open Parent’s higher possible upside, research analysts plainly believe E2open Parent is more favorable than Cheer.

Volatility & Risk

E2open Parent has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Cheer has a beta of -0.34, indicating that its share price is 134% less volatile than the S&P 500.

Institutional and Insider Ownership

18.5% of Cheer shares are held by institutional investors. 4.7% of E2open Parent shares are held by company insiders. Comparatively, 41.7% of Cheer shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

E2open Parent beats Cheer on 6 of the 10 factors compared between the two stocks.

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.

About Cheer

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People's Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.