Issuer Direct (NYSEAMERICAN:ISDR) and Net 1 UEPS Technologies (NASDAQ:UEPS) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
Valuation and Earnings
This table compares Issuer Direct and Net 1 UEPS Technologies' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Issuer Direct | $16.30 million | 4.96 | $690,000.00 | $0.33 | 65.45 |
Net 1 UEPS Technologies | $151 million | 1.99 | $-78,360,000.00 | ($1.70) | -3.12 |
Issuer Direct has higher earnings, but lower revenue than Net 1 UEPS Technologies. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Issuer Direct, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Issuer Direct has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Net 1 UEPS Technologies has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.
Profitability
This table compares Issuer Direct and Net 1 UEPS Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Issuer Direct | 10.46% | 8.81% | 7.04% |
Net 1 UEPS Technologies | -59.26% | -40.77% | -22.58% |
Insider & Institutional Ownership
18.8% of Issuer Direct shares are held by institutional investors. Comparatively, 21.8% of Net 1 UEPS Technologies shares are held by institutional investors. 32.1% of Issuer Direct shares are held by insiders. Comparatively, 3.3% of Net 1 UEPS Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Issuer Direct and Net 1 UEPS Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Issuer Direct | 0 | 0 | 1 | 0 | 3.00 |
Net 1 UEPS Technologies | 0 | 0 | 1 | 0 | 3.00 |
Issuer Direct currently has a consensus price target of $18.00, indicating a potential downside of 16.67%. Net 1 UEPS Technologies has a consensus price target of $7.00, indicating a potential upside of 32.08%. Given Net 1 UEPS Technologies' higher probable upside, analysts clearly believe Net 1 UEPS Technologies is more favorable than Issuer Direct.
Summary
Issuer Direct beats Net 1 UEPS Technologies on 8 of the 12 factors compared between the two stocks.