Analyzing Snail (NASDAQ:SNAL) and Expensify (NASDAQ:EXFY)

Expensify (NASDAQ:EXFY) and Snail (NASDAQ:SNAL) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Volatility & Risk

Expensify has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Snail has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expensify	$137.44 million	1.95	-$41.46 million	($0.18)	-19.33
Snail	$86.82 million	0.79	-$9.09 million	$0.09	20.56

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

Profitability

This table compares Expensify and Snail’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expensify	-11.81%	-14.72%	-8.89%
Snail	3.15%	136.34%	3.51%

Insider and Institutional Ownership

68.4% of Expensify shares are owned by institutional investors. Comparatively, 0.4% of Snail shares are owned by institutional investors. 17.3% of Expensify shares are owned by company insiders. Comparatively, 78.2% of Snail shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Expensify and Snail, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expensify	0	3	1	0	2.25
Snail	0	0	0	0	0.00

Expensify currently has a consensus price target of $3.17, suggesting a potential downside of 9.00%. Given Expensify’s stronger consensus rating and higher possible upside, equities analysts clearly believe Expensify is more favorable than Snail.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.

About Snail

Snail, Inc., together with its subsidiaries, researches, develops, markets, publishes, and distributes interactive digital entertainment for consumers worldwide. It offers games, content, and support for various platforms, including game consoles, personal computers, mobile phones, and tablets. Snail, Inc. was founded in 2009 and is headquartered in Culver City, California. Snail, Inc. operates as a subsidiary of Olive Wood Global Development Limited.