Financial Analysis: Expensify (NASDAQ:EXFY) versus Snail (NASDAQ:SNAL)

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

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%

Volatility and Risk

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

Insider & 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 stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expensify	$137.44 million	1.88	-$41.46 million	($0.18)	-18.61
Snail	$86.82 million	0.79	-$9.09 million	$0.09	20.67

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.

Analyst Recommendations

This is a breakdown of recent ratings for Expensify and Snail, as provided by MarketBeat.

	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 presently has a consensus target price of $3.17, indicating a potential downside of 5.47%. Given Expensify’s stronger consensus rating and higher possible upside, 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.