Research Solutions (OTCMKTS:RSSS) and Steel Connect (NASDAQ:STCN) are both small-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
This table compares Research Solutions and Steel Connect’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Research Solutions has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Steel Connect has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.
Earnings & Valuation
This table compares Research Solutions and Steel Connect’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Research Solutions||$28.02 million||1.94||-$1.68 million||N/A||N/A|
|Steel Connect||$645.26 million||0.19||$36.71 million||N/A||N/A|
Steel Connect has higher revenue and earnings than Research Solutions.
Institutional and Insider Ownership
51.6% of Steel Connect shares are owned by institutional investors. 29.5% of Research Solutions shares are owned by company insiders. Comparatively, 8.7% of Steel Connect shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings for Research Solutions and Steel Connect, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Steel Connect beats Research Solutions on 5 of the 9 factors compared between the two stocks.
About Research Solutions
Research Solutions, Inc., through its subsidiaries, provides annual licenses that allow customers to access and utilize features of cloud based software-as-a-service research intelligence platform. The company is also involved in the transactional sale of published scientific, technical, and medical content managed, sourced, and delivered through the Transactions platform. Its solutions enable life science and other research intensive organizations to speed up research and development activities with single sourced access and management of content and data used in the intellectual property development lifecycle. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Encino, California.
About Steel Connect
Steel Connect, Inc., through its subsidiaries, provides supply chain and logistics services to the consumer electronics, communications, computing, medical devices, software, storage, retail, and other industries. It operates through five segments: Americas, Asia, Europe, Direct Marketing, and e-Business. The company offers product configuration and packaging, kitting, and assembly of components and parts into finished goods; and value-added processes, such as product testing, radio frequency identification (RFID) tagging, product or service activation, language settings, personalization and engraving, multi-channel packaging, and packaging design services. It also provides fulfillment services, including order management, pick, pack and ship, retail compliance, and demand planning services; and content protection and activation, and IP security services, as well as optimizes component and finished goods inventory levels. In addition, it offers operates a cloud-based e-commerce platform, which online buying experience so that products can be purchased, serviced, and delivered worldwide; and provides reverse logistics services that simplifies the returns process for retailers and manufacturers to improve service parts management and the value of returned assets. Further, the company offers EZ Connect service, which provides essential fulfillment capabilities for emerging growth companies without the expensive surprises associated with third-party fulfillment services; and direct marketing services comprising end-to-end services for paper-based direct marketing and omnichannel marketing campaign services. The company was formerly known as ModusLink Global Solutions, Inc. and changed its name to Steel Connect, Inc. in February 2018. Steel Connect, Inc. was incorporated in 1986 and is headquartered in Waltham, Massachusetts.
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