Reviewing Points International (NASDAQ:PCOM) and Sito Mobile (NASDAQ:SITO)

Sito Mobile (NASDAQ:SITO) and Points International (NASDAQ:PCOM) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

This table compares Sito Mobile and Points International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sito Mobile -86.49% -851.23% -159.16%
Points International 0.51% 9.12% 2.54%

Institutional & Insider Ownership

8.6% of Sito Mobile shares are held by institutional investors. Comparatively, 54.5% of Points International shares are held by institutional investors. 2.2% of Sito Mobile shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Sito Mobile has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Points International has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sito Mobile and Points International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sito Mobile 0 0 0 0 N/A
Points International 0 2 2 0 2.50

Points International has a consensus price target of $17.02, suggesting a potential upside of 74.92%. Given Points International’s higher possible upside, analysts clearly believe Points International is more favorable than Sito Mobile.

Valuation & Earnings

This table compares Sito Mobile and Points International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sito Mobile $39.75 million 0.05 -$17.07 million ($0.68) -0.11
Points International $401.18 million 0.32 $11.89 million $0.86 11.31

Points International has higher revenue and earnings than Sito Mobile. Sito Mobile is trading at a lower price-to-earnings ratio than Points International, indicating that it is currently the more affordable of the two stocks.

Summary

Points International beats Sito Mobile on 12 of the 13 factors compared between the two stocks.

About Sito Mobile

SITO Mobile, Ltd. provides advertisement delivery, measurement and attribution, and consumer insights using its proprietary location-based marketing intelligence platform in the United States and Canada. It offers Ad Placement, which delivers advertisements on behalf of its customers to audiences of existing and prospective consumers in a privacy compliant manner; and advertisements across television, desktop, social media, and digital out of home platforms. The company also provides measurement and attribution products, including Real-time Verified Walk-In, a platform built in-house working in tandem with a data management platform and demand side platform; Location, Audience and Behavior Sciences reports that provide an analysis of a customer's audience, breaking down location, and purchase and demographic data against various control groups for selected targeted audiences in real time; and Purchase Science Reports, which offer transaction data to make marketing campaigns relevant and measurable. In addition, it offers Insights products, such as Consumer Behavior and Location Sciences, which explores the consumer journey and presents strategic knowledge assets and actionable insights for executives and strategic decision makers looking to understand and influence consumer behaviors. The company provides its services to brands, advertising agencies, out-of-home advertisers, media companies, and non-media companies through salesforce and account management teams. The company was formerly known as Single Touch Systems, Inc. and changed its name to SITO Mobile, Ltd. in September 2014. SITO Mobile, Ltd. was incorporated in 2000 and is based in Jersey City, New Jersey.

About Points International

Points International Ltd. provides e-commerce and technology services to loyalty program operators in the United States, Europe, and internationally. It operates through three segments: Loyalty Currency Retailing, Platform Partners, and Points Travel. The Loyalty Currency Retailing segment provides products and services designed to help loyalty program members unlock the value of their loyalty currency and accelerate the time to a reward. The Platform Partners segment offers various applications that are connected to and enabled by the functionality of the loyalty commerce platform (LCP); and provides loyalty programs, merchants, and other consumer service applications leverage the LCP to distribute loyalty currency and loyalty commerce transactions through multiple channels, including loyalty program, co-branded, and third-party channels. The Points Travel segment provides online travel bookings, including Points Travel and PointsHound services. The company is headquartered in Toronto, Canada.

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