Analyzing CFN Enterprises (OTCMKTS:CNFN) and Edgio (NASDAQ:EGIO)

CFN Enterprises (OTCMKTS:CNFN) and Edgio (NASDAQ:EGIO) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Institutional and Insider Ownership

23.2% of Edgio shares are owned by institutional investors. 9.9% of CFN Enterprises shares are owned by company insiders. Comparatively, 2.6% of Edgio shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares CFN Enterprises and Edgio’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CFN Enterprises	$3.54 million	9.29	-$15.19 million	N/A	N/A
Edgio	$338.60 million	0.27	-$136.52 million	($25.60)	-0.62

CFN Enterprises has higher earnings, but lower revenue than Edgio.

Volatility and Risk

CFN Enterprises has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Edgio has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares CFN Enterprises and Edgio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CFN Enterprises	-430.91%	N/A	-111.05%
Edgio	-35.10%	-45.85%	-18.07%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CFN Enterprises and Edgio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CFN Enterprises	0	0	0	0	N/A
Edgio	0	1	1	0	2.50

Edgio has a consensus target price of $45.00, indicating a potential upside of 182.13%. Given Edgio’s higher possible upside, analysts clearly believe Edgio is more favorable than CFN Enterprises.

Summary

Edgio beats CFN Enterprises on 6 of the 11 factors compared between the two stocks.

About CFN Enterprises

CFN Enterprises Inc. engages in the sponsored content and marketing activities for legal CBD, cannabis, and psychedelics industries in the United States. The company also manufactures CBD products for growers, pharmaceutical, wellness providers, and retailers' needs. It offers sponsored content, including articles, press releases, videos, podcasts, advertisements and other media, email advertisements, and other marketing campaigns. The company also operates various media platforms, such as CannabisFN.com, the CannabisFN iOS app, the CFN Media YouTube channel, the CFN Media podcast, and other venues to educate and inform investors interested in the cannabis industry. It distributes its content to various online platforms, which include CannabisFN.com website, press releases, financial news syndicates, search engines, YouTube, iTunes, Twitter, Instagram, Facebook, LinkedIn, and others. The company was formerly known as Accelerize Inc. and changed its name to CFN Enterprises Inc. in October 2019. CFN Enterprises Inc. was founded in 2001 and is based in Whitefish, Montana.

About Edgio

Edgio, Inc. provides edge-enabled software solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates private global networks with distributed computing resources and extensive connectivity to last-mile broadband network providers; offers live and on-demand video delivery services; and provides platform, media, and application solutions. It also offers cloud security, edge compute, origin storage, and support services. In addition, the company provides content delivery, video content management, and streaming services, performance services for website and web application and security; professional services, cloud storage, and edge computing services. The company was formerly known as Limelight Networks, Inc. and changed its name to Edgio, Inc. in June 2022. Edgio, Inc. was founded in 2001 and is headquartered in Phoenix, Arizona.