Analyzing RightsCorp (OTCMKTS:RIHT) and PFSweb (OTCMKTS:PFSW)

RightsCorp (OTCMKTS:RIHT) and PFSweb (NASDAQ:PFSW) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Institutional and Insider Ownership

57.0% of PFSweb shares are held by institutional investors. 6.5% of PFSweb shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

RightsCorp has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, PFSweb has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for RightsCorp and PFSweb, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RightsCorp 0 0 0 0 N/A
PFSweb 0 1 3 0 2.75

PFSweb has a consensus price target of $6.50, indicating a potential upside of 154.90%. Given PFSweb’s higher possible upside, analysts clearly believe PFSweb is more favorable than RightsCorp.

Valuation and Earnings

This table compares RightsCorp and PFSweb’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RightsCorp $780,000.00 N/A -$1.35 million N/A N/A
PFSweb $326.16 million 0.15 $1.23 million $0.29 8.79

PFSweb has higher revenue and earnings than RightsCorp.

Profitability

This table compares RightsCorp and PFSweb’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RightsCorp N/A N/A N/A
PFSweb 0.15% 10.54% 2.67%

Summary

PFSweb beats RightsCorp on 10 of the 10 factors compared between the two stocks.

RightsCorp Company Profile

Rightscorp, Inc. operates as a technology company that has a patent-pending proprietary method for collecting payments from illegal downloaders of copyrighted content through notifications sent to their Internet service providers (ISP's). The company's technology system monitors peer-to-peer file sharing networks and sends through email to ISP's notifications of copyright infringement by the ISPs' customers with date, time, copyright title, and other specific technology identifiers worldwide. It primarily serves copyright holders. The company was founded in 2010 and is headquartered in Santa Monica, California.

PFSweb Company Profile

PFSweb, Inc. provides omni-channel commerce solutions in the United States, Europe, Canada, and India. It operates through two segments, LiveArea Professional Services and PFS Operations. The company offers strategic commerce consulting services, including commerce strategy, omni-channel consulting, digital opportunity audit, organizational/operational readiness, and platform evaluation/selection services; and design and digital marketing services, such as design, user experience, interactive development, search engine optimization and paid search, affiliate marketing, conversion optimization, storefront management, email marketing, and digital analytics. It also provides technology services comprising commerce development, managed, quality assurance, and training services; and order to cash service, such as technology collaboration, information management services, payments, business-to-business financial management, and direct-to-consumer financial management. In addition, the company offers fulfillment services, including distribution facilities and infrastructure, facility operations and management, pop-up distribution centers, and kitting and assembly services; and customer care services comprising customer service application, customer assistance, quality monitoring, and customer self-help. It serves clients in various industries, such as fashion apparel and accessories, fragrance and beauty products, consumer packaged goods, home furnishings and housewares, coins and collectibles, and technology products. The company was founded in 1999 and is headquartered in Allen, Texas.

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