PFSweb (NASDAQ:PFSW – Get Rating) and Newtek Business Services (NASDAQ:NEWT – Get Rating) are both small cap business services companies, but which stock is superior? We will compare the two companies based on their risk strength, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
This is a summary of current ratings and price targets for PFSweb and Newtek Business Services, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Newtek Business Services||1||0||0||0||1.00|
PFSweb currently has a consensus target price of $13.00, indicating a potential upside of 6.30%. Given PFSweb’s stronger consensus rating and higher likely upside, analysts clearly think PFSweb is more favorable than Newtek Business Services.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of PFSweb and Newtek Business Services.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|PSFweb||$277.30 million||1.00||$147.23 million||$6.69||1.83|
|Newtek Business Services||$108.49 million||4.27||$84.14 million||$2.75||6.97|
PFSweb has higher revenue and profit than Newtek Business Services. PFSweb trades at a lower price-to-earnings ratio than Newtek Business Services, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of PFSweb and Newtek Business Services.
|Net margins||Return on equity||return on assets|
|Newtek Business Services||93.16%||18.95%||7.18%|
Volatility and risk
PFSweb has a beta of 1.61, which means its stock price is 61% more volatile than the S&P 500. Comparatively, Newtek Business Services has a beta of 1.07, which means its stock price is 7% more volatile than the S&P 500.
Insider and Institutional Ownership
73.4% of PFSweb shares are held by institutional investors. Comparatively, 25.2% of Newtek Business Services shares are held by institutional investors. 8.4% of PFSweb shares are held by insiders. Comparatively, 5.1% of Newtek Business Services shares are held by insiders. Strong institutional ownership indicates that endowments, hedge funds, and large money managers believe a stock is poised for long-term growth.
PFSweb beats Newtek Business Services on 9 out of 14 factors compared between the two stocks.
About PFSweb (Get a rating)
PFSweb, Inc., together with its subsidiaries, provides omnichannel commerce solutions in the United States, Belgium, Bulgaria, United Kingdom, Canada and India. The Company offers a cash order service, which provides distributed order orchestration and payment processing; order fulfillment services; contact center services focused on providing essential services, such as order entry, return authorization, product request and order tracking, as well as iCA, an application where agents provide service functions such as placing orders, checking order status, facilitating returns, initiating upsells and cross-sells, managing escalations, and collecting voice-of-customer insights. It serves customers in various industries, such as fashion apparel and accessories, perfume and beauty products, healthcare, luxury goods, cosmetics, footwear, consumer packaged goods, housewares, coins and collectibles, jewelry, computer and office products and other industries. The company was incorporated in 1999 and is headquartered in Allen, Texas.
About Newtek Business Services (Get a rating)
Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small and medium business market in the United States. The company is also looking to invest in early-stage companies. The company seeks to make debt and equity investments. Within leveraged investments, he focuses on senior loans, which have tenors of 1 to 25 years; junior loans, which have tenors of 5 to 25 years, and unsecured loans, which are provided to meet short-term financing needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance and Capcos segments. The company provides small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment and inventory, as well as refinancing debt and funding franchises, working capital and business acquisitions; and provides small business loan servicing and advisory services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software for merchants, e-commerce, electronic solutions for accepting payments other than in cash, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty cards. programs. The company also provides website hosting, dedicated server and cloud hosting services; Web design and development; online marketing; data storage and backup and other related services; and e-commerce services, such as payment processing, online shopping cart tools, website design, and web-related services; Accounts Receivable Funding and Secure Gateway. Additionally, it offers Newtek Advantage, a real-time mobile operating platform for a business to access data on a smartphone, tablet, laptop or PC for e-commerce, credit transactions /debit, website statistics, payroll, insurance and business loans. . In addition, the Company sells lines of personal, business and health/benefits insurance products; and employee payroll management and tax filing processing services. It has strategic alliances with American International Group, CTAA, Navy Federal Credit Union, Credit Union National Association, Pershing and others to provide agent services to small business clients. The company is looking to invest in the New York and Louisiana area. The company is looking to invest between $0.3 million and $3 million in businesses. It offers small business loans on terms ranging from $0.05 million to $10 million. The company also offers accounts receivable financing ranging from $0.05 million to $1.5 million. It also offers financing from $0.05 million to $10 million to owner-occupied real estate businesses with an average net income over the past 2 years that must not exceed $2.5 million. Newtek Business Services Corp., formerly known as Newtek Business Services Inc., was incorporated on August 26, 2013 and is headquartered in Boca Raton, Florida with additional offices in Lake Success, New York, Garden City , New York ; Miami, Florida; Milwaukee, Wis.; New Orleans, Louisiana; and New York, New York.
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