OI (OTCMKTS:OIBRQ) versus Crexendo (NASDAQ:CXDO) Critical Review

OI (OTCMKTS:OIBRQ) and Crexendo (NASDAQ:CXDO) are both small-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

9.5% of Crexendo shares are owned by institutional investors. 56.2% of Crexendo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for OI and Crexendo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OI	0	0	0	0	0.00
Crexendo	0	0	3	0	3.00

Crexendo has a consensus price target of $6.67, suggesting a potential upside of 11.48%. Given Crexendo’s stronger consensus rating and higher probable upside, analysts clearly believe Crexendo is more favorable than OI.

Profitability

This table compares OI and Crexendo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OI	N/A	N/A	N/A
Crexendo	2.09%	9.09%	7.30%

Earnings and Valuation

This table compares OI and Crexendo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OI	$1.94 billion	0.01	-$1.58 billion	N/A	N/A
Crexendo	$53.20 million	3.00	-$360,000.00	$0.03	199.40

Crexendo has lower revenue, but higher earnings than OI.

Risk & Volatility

OI has a beta of -16.94, suggesting that its stock price is 1,794% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Summary

Crexendo beats OI on 11 of the 12 factors compared between the two stocks.

About OI

Oi S.A., together with its subsidiaries, provides telecommunication services in Brazil and internationally. The company offers fixed telephony services; domestic and international long-distance services; and maintenance and repair services. It also provides call center and telemarketing, Internet, network, and Wi-Fi Internet services; and financial, and payment and credit system services, as well as consulting services. In addition, it engages in the investment management activities. The company was formerly known as Brasil Telecom S.A. and changed its name to Oi S.A. in February 2012. Oi S.A. was founded in 1998 and is headquartered in Rio de Janeiro, Brazil.

About Crexendo

Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.