Analyzing Points International (PCOM) and Geeknet (GKNT)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Points International and Geeknet, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Points International 0 0 2 0 3.00
Geeknet 0 0 0 0 N/A

Points International presently has a consensus price target of $13.50, indicating a potential upside of 27.48%. Given Points International’s higher possible upside, research analysts clearly believe Points International is more favorable than Geeknet.

Insider & Institutional Ownership

37.4% of Points International shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Points International and Geeknet’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Points International $321.82 million 0.48 -$1.51 million ($0.09) -117.67
Geeknet N/A N/A N/A ($1.48) -13.50

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

Volatility and Risk

Points International has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Geeknet has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Points International -0.43% 8.28% 3.47%
Geeknet -20.58% -25.85% -19.84%

Summary

Points International beats Geeknet on 9 of the 10 factors compared between the two stocks.

About Points International

Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com Website. It also offers Points Travel, which is private label travel e-commerce platform designed specifically for the loyalty industry. The Company operates the PointsHound.com Website, a hotel booking engine and loyalty currency aggregator built specifically for frequent travelers.

About Geeknet

Geeknet, Inc. (Geeknet) sells collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers through the ThinkGeek Website and exclusive products to the Company’s wholesale channel customers. The Company has three segments: Website, Wholesale and ThinkGeek Solutions. The ThinkGeek Solutions segment has been aggregated into the Website segment. The Website segment sells geek-themed retail products and video game-themed merchandise through the ThinkGeek Website and through the ThinkGeek Solutions Web-stores. The Wholesale segment sells primarily exclusive GeekLabs (the in-house product development team) products to brick-and-mortar retailers. The Company along with its subsidiaries, operates a business aimed at the global geek community, which includes technology enthusiasts, pop-culture aficionados and other fans. ThinkGeek, Inc. and ThinkGeek Solutions, Inc. are its two wholly owned subsidiaries.

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