Financial Review: Hong Kong Technology Venture (OTCMKTS:HKTVY) & Crexendo (NASDAQ:CXDO)

Hong Kong Technology Venture (OTCMKTS:HKTVY) and Crexendo (NASDAQ:CXDO) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Hong Kong Technology Venture and Crexendo’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hong Kong Technology Venture	$488.84 million	0.34	$27.10 million	N/A	N/A
Crexendo	$53.20 million	2.21	-$360,000.00	($0.02)	-229.00

Hong Kong Technology Venture has higher revenue and earnings than Crexendo.

Institutional and Insider Ownership

9.5% of Crexendo shares are held by institutional investors. 56.6% of Crexendo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Hong Kong Technology Venture has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Hong Kong Technology Venture and Crexendo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hong Kong Technology Venture	0	0	0	0	N/A
Crexendo	0	1	1	0	2.50

Crexendo has a consensus target price of $6.88, suggesting a potential upside of 50.11%. Given Crexendo’s higher probable upside, analysts clearly believe Crexendo is more favorable than Hong Kong Technology Venture.

Profitability

This table compares Hong Kong Technology Venture and Crexendo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hong Kong Technology Venture	N/A	N/A	N/A
Crexendo	-0.68%	6.60%	5.12%

Summary

Crexendo beats Hong Kong Technology Venture on 8 of the 11 factors compared between the two stocks.

About Hong Kong Technology Venture

Hong Kong Technology Venture Company Limited, together with its subsidiaries, engages in the ecommerce and technology businesses in Hong Kong. The company is involved in the online shopping mall operation, multimedia production, and other related services; and research and development, and provision of technology solutions as a service, such as digital retailing and retail store automation. It also invests in properties; and offers software design, multimedia production and distribution, logistic and delivery, digital marketing, automated retail store, retail technology solution, and warehouse management and fulfilment services. The company was formerly known as Hong Kong Television Network Limited and changed its name to Hong Kong Technology Venture Company Limited in July 2021. Hong Kong Technology Venture Company Limited was incorporated in 1992 and is headquartered In Tseung Kwan O, Hong Kong.

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.