PFSweb (NASDAQ:PFSW) and Spindle (OTCMKTS:SPDL) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Earnings and Valuation
This table compares PFSweb and Spindle’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PFSweb | $326.16 million | 0.24 | $1.23 million | $0.29 | 13.72 |
| Spindle | $80,000.00 | 0.29 | -$3.13 million | N/A | N/A |
PFSweb has higher revenue and earnings than Spindle.
Analyst Recommendations
This is a summary of recent recommendations for PFSweb and Spindle, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PFSweb | 0 | 1 | 3 | 0 | 2.75 |
| Spindle | 0 | 0 | 0 | 0 | N/A |
PFSweb currently has a consensus price target of $10.33, indicating a potential upside of 159.63%. Given PFSweb’s higher possible upside, research analysts plainly believe PFSweb is more favorable than Spindle.
Volatility and Risk
PFSweb has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Spindle has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Profitability
This table compares PFSweb and Spindle’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PFSweb | 0.25% | 12.07% | 3.14% |
| Spindle | N/A | N/A | -3,950.53% |
Institutional and Insider Ownership
57.9% of PFSweb shares are owned by institutional investors. 5.1% of PFSweb shares are owned by company insiders. Comparatively, 14.6% of Spindle shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
PFSweb beats Spindle on 8 of the 11 factors compared between the two stocks.
About PFSweb
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.
About Spindle
Spindle, Inc. provides merchant and consumer-facing commerce solutions for small and medium-sized businesses in the United States. It offers payment processing services to merchants using its Catalyst Gateway; and acts as an agent, independent contractor, or referral partner to broker merchants that it secures to other merchant processors for ongoing fees based on processing volume. The company is based in Mesa, Arizona.
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