Weave Communications (NYSE:WEAV – Get Free Report) and Inspired Entertainment (NASDAQ:INSE – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Institutional & Insider Ownership
86.8% of Weave Communications shares are held by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are held by institutional investors. 36.3% of Weave Communications shares are held by company insiders. Comparatively, 12.9% of Inspired Entertainment shares are held 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.
Volatility and Risk
Weave Communications has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Weave Communications | $204.31 million | 3.40 | -$31.03 million | ($0.39) | -24.08 |
| Inspired Entertainment | $297.10 million | 0.66 | $7.60 million | $2.32 | 3.12 |
Inspired Entertainment has higher revenue and earnings than Weave Communications. Weave Communications is trading at a lower price-to-earnings ratio than Inspired Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings for Weave Communications and Inspired Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weave Communications | 0 | 1 | 2 | 1 | 3.00 |
| Inspired Entertainment | 0 | 1 | 1 | 2 | 3.25 |
Weave Communications currently has a consensus price target of $17.38, suggesting a potential upside of 85.04%. Inspired Entertainment has a consensus price target of $15.40, suggesting a potential upside of 112.71%. Given Inspired Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Inspired Entertainment is more favorable than Weave Communications.
Profitability
This table compares Weave Communications and Inspired Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Weave Communications | -13.87% | -28.37% | -10.49% |
| Inspired Entertainment | -0.10% | -6.35% | 1.44% |
Summary
Inspired Entertainment beats Weave Communications on 9 of the 15 factors compared between the two stocks.
About Weave Communications
Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.
About Inspired Entertainment
Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.
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