Critical Analysis: hopTo (OTCMKTS:HPTO) and Squarespace (NYSE:SQSP)

hopTo (OTCMKTS:HPTO) and Squarespace (NYSE:SQSP) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

92.3% of Squarespace shares are owned by institutional investors. 46.0% of hopTo shares are owned by company insiders. Comparatively, 45.0% of Squarespace shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for hopTo and Squarespace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
hopTo	0	0	0	0	N/A
Squarespace	0	10	4	0	2.29

Squarespace has a consensus target price of $43.14, indicating a potential downside of 6.99%. Given Squarespace’s higher probable upside, analysts plainly believe Squarespace is more favorable than hopTo.

Profitability

This table compares hopTo and Squarespace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
hopTo	N/A	N/A	N/A
Squarespace	-0.45%	N/A	-0.52%

Volatility & Risk

hopTo has a beta of 2.98, suggesting that its share price is 198% more volatile than the S&P 500. Comparatively, Squarespace has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares hopTo and Squarespace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
hopTo	$3.91 million	1.33	$120,000.00	N/A	N/A
Squarespace	$1.01 billion	6.34	-$7.08 million	($0.05)	-927.60

hopTo has higher earnings, but lower revenue than Squarespace.

About hopTo

hopTo Inc., together with its subsidiaries, develops and sells application publishing software in the United States, Brazil, Japan, Germany, the Netherlands, and internationally. The company's application publishing software includes application virtualization and cloud computing software for a range of computer operating systems, including Windows, UNIX, and various Linux-based variants. It provides its application publishing software solutions under the GO-Global brand name. The company offers GO-Global, an application access solution that provides cross-platform remote access and Web-enabled access to existing software applications, as well as the deployment of secure and private cloud environments for use and/or resale by independent software vendors, corporate enterprises, governmental and educational institutions, and others. Its GO-Global software products comprise GO-Global for Windows that allows access to Windows-based applications from remote locations and Internet connections; GO-Global for UNIX, which allows access to UNIX and Linux-based applications from remote locations, and Internet and connections; and GO-Global Client that allows remote application access from various local, remote, and mobile platforms, including Windows, Linux, UNIX, Apple OS X and iOS, and Google Android. The company sells its products through resellers, such as original equipment manufacturers, system integrators, value-added resellers, and distributors. It serves small to medium-sized companies, departments within large corporations, governmental and educational institutions, and independent software vendors. The company was formerly known as GraphOn Corporation and changed its name to hopTo Inc. in September 2013. hopTo Inc. was incorporated in 1996 and is headquartered in Concord, New Hampshire.

About Squarespace

Squarespace, Inc. operates platform for businesses and independent creators to build online presence, grow their brands, and manage their businesses across the internet in the United States and internationally. It enables users to manage their projects and businesses through websites, domains, e-commerce, marketing tools, scheduling, and hospitality services, as well as tools for managing a social media presence. It serves a range of industries and sizes from sole proprietors to enterprises. Squarespace, Inc. was founded in 2003 and is headquartered in New York, New York.