Analyzing Asure Software (NASDAQ:ASUR) & ECARX (NASDAQ:ECX)

Asure Software (NASDAQ:ASUR) and ECARX (NASDAQ:ECX) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

Asure Software has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, ECARX has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

71.6% of Asure Software shares are held by institutional investors. 8.9% of Asure Software shares are held by company insiders. Comparatively, 20.0% of ECARX shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Asure Software and ECARX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Asure Software	-8.38%	3.86%	1.65%
ECARX	-21.18%	N/A	-25.16%

Valuation & Earnings

This table compares Asure Software and ECARX’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asure Software	$119.08 million	1.90	-$9.21 million	($0.43)	-20.39
ECARX	$657.10 million	0.91	-$132.42 million	($0.42)	-4.19

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

Analyst Ratings

This is a breakdown of current ratings for Asure Software and ECARX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asure Software	0	1	4	0	2.80
ECARX	0	0	0	0	N/A

Asure Software currently has a consensus price target of $13.40, suggesting a potential upside of 52.79%. Given Asure Software’s higher probable upside, equities analysts plainly believe Asure Software is more favorable than ECARX.

Summary

Asure Software beats ECARX on 9 of the 13 factors compared between the two stocks.

About Asure Software

Asure Software, Inc. engages in the provision of cloud-based Human Capital Management (HCM) software solutions in the United States. It provides its human resources (HR) tool as Software-as-a-Service that helps various small and medium-sized businesses to build productive workforce to help them stay compliant and allocate resources to grow their business. The company's solutions include Asure Payroll & Tax, an integrated solution that simplifies payroll and automates regulations associated with payroll and taxes, including wages, benefits, overtime, garnishments, tips, direct deposits, and fair labor standard act, as well as federal, state, and local payroll taxes; and Tax Management Solutions, that provides payroll tax processing software and service solutions, as well as bulk filing and processing support of employee retention tax credits, for the payroll service industry, mid-market, and corporate employers. It also provides HR compliance and services, including HR support, which provides an on-demand HR resource library, phone, and email support for various HR issues and compliance, and policy updates; Strategic HR, which provides in-depth support for strategic HR decision making; and Total HR, which provides a complete HR outsourcing solution, for handling HR complexities, such as employee self-service, applicant tracking, onboarding, and compliance. In addition, the company offers Time and Attendance, which provides cost savings and return on investment gains come in the form of strategic use of labor dollars and the elimination of time theft; and AsureMarketplace that automates interactions between its HCM systems with third-party providers. Asure Software, Inc. was incorporated in 1985 and is headquartered in Austin, Texas.

About ECARX

ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.