Analyzing Edgio (NASDAQ:EGIO) and Alight (NYSE:ALIT)

Edgio (NASDAQ:EGIO) and Alight (NYSE:ALIT) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Edgio and Alight, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edgio	0	1	0	0	2.00
Alight	0	1	9	0	2.90

Edgio currently has a consensus price target of $10.00, indicating a potential upside of 800.90%. Alight has a consensus price target of $10.75, indicating a potential upside of 46.56%. Given Edgio’s higher probable upside, research analysts clearly believe Edgio is more favorable than Alight.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Edgio	N/A	N/A	N/A
Alight	-6.58%	5.42%	2.36%

Volatility and Risk

Edgio has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Alight has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Insider & Institutional Ownership

23.2% of Edgio shares are owned by institutional investors. Comparatively, 96.7% of Alight shares are owned by institutional investors. 2.6% of Edgio shares are owned by insiders. Comparatively, 5.3% of Alight shares are owned by 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.

Valuation and Earnings

This table compares Edgio and Alight”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edgio	$403.59 million	0.02	-$136.52 million	($25.60)	-0.04
Alight	$3.36 billion	1.23	-$345.00 million	($0.62)	-11.83

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

Summary

Alight beats Edgio on 10 of the 14 factors compared between the two stocks.

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.

About Alight

Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.