Reviewing Crexendo (NASDAQ:CXDO) and IREN (NASDAQ:IREN)

IREN (NASDAQ:IREN) and Crexendo (NASDAQ:CXDO) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk & Volatility

IREN has a beta of 4.28, indicating that its stock price is 328% more volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IREN	$707.01 million	24.43	-$702.62 million	($2.34)	-18.73
Crexendo	$68.17 million	2.79	$5.07 million	$0.14	40.86

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IREN	-99.38%	-15.46%	-5.51%
Crexendo	5.31%	14.34%	11.44%

Analyst Recommendations

This is a breakdown of current ratings and price targets for IREN and Crexendo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IREN	2	3	15	1	2.71
Crexendo	0	1	3	0	2.75

IREN currently has a consensus target price of $81.57, indicating a potential upside of 86.11%. Crexendo has a consensus target price of $10.50, indicating a potential upside of 83.57%. Given IREN’s higher possible upside, analysts clearly believe IREN is more favorable than Crexendo.

Insider and Institutional Ownership

41.1% of IREN shares are held by institutional investors. Comparatively, 9.5% of Crexendo shares are held by institutional investors. 5.0% of IREN shares are held by insiders. Comparatively, 47.2% of Crexendo shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Crexendo beats IREN on 8 of the 15 factors compared between the two stocks.

About IREN

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.

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.