Critical Survey: Edgio (NASDAQ:EGIO) and Generation Hemp (OTCMKTS:GENH)

Edgio (NASDAQ:EGIOGet Rating) and Generation Hemp (OTCMKTS:GENHGet Rating) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Earnings and Valuation

This table compares Edgio and Generation Hemp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Edgio $217.63 million 0.49 -$54.76 million ($0.50) -0.96
Generation Hemp $680,000.00 36.83 -$9.82 million N/A N/A

Generation Hemp has lower revenue, but higher earnings than Edgio.

Profitability

This table compares Edgio and Generation Hemp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Edgio -27.17% -16.61% -8.55%
Generation Hemp -674.14% -15,656.36% -195.12%

Volatility & Risk

Edgio has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Generation Hemp has a beta of -0.38, indicating that its share price is 138% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Edgio and Generation Hemp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Edgio 0 4 0 1 2.40
Generation Hemp 0 0 0 0 N/A

Edgio currently has a consensus target price of $2.70, suggesting a potential upside of 461.80%. Given Edgio’s higher probable upside, research analysts plainly believe Edgio is more favorable than Generation Hemp.

Insider and Institutional Ownership

30.7% of Edgio shares are owned by institutional investors. 10.2% of Edgio shares are owned by insiders. Comparatively, 60.9% of Generation Hemp shares are owned by 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.

Summary

Edgio beats Generation Hemp on 8 of the 11 factors compared between the two stocks.

About Edgio

(Get Rating)

Edgio, Inc. engages in the provision of content delivery network services. Its products include digital content and video delivery, cloud security, edge computing, origin storage and support services. The firm’s solutions include realtime streaming, file distribution, live video and video on demand. The company was founded by Michael M. Gordon, Allan M. Kalpan, Nathan F. Raciborski and William H. Rinehart in June 2001 and is headquartered in Phoenix, AZ.

About Generation Hemp

(Get Rating)

Evergreen Sustainable Enterprises, Inc. operates as a hemp company. It engages in leases warehouse space to hemp seed growers. The company was founded on July 28, 2008 and is headquartered in Dallas, TX.

Receive News & Ratings for Edgio Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Edgio and related companies with MarketBeat.com's FREE daily email newsletter.