Reviewing American Software (NASDAQ:AMSWA) & RocketFuel Blockchain (OTCMKTS:RKFL)

RocketFuel Blockchain (OTCMKTS:RKFLGet Rating) and American Software (NASDAQ:AMSWAGet Rating) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Institutional and Insider Ownership

2.4% of RocketFuel Blockchain shares are held by institutional investors. Comparatively, 82.1% of American Software shares are held by institutional investors. 9.7% of American Software shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares RocketFuel Blockchain and American Software’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RocketFuel Blockchain N/A N/A -$2.36 million ($0.21) -0.95
American Software $111.41 million 5.11 $8.09 million $0.37 45.81

American Software has higher revenue and earnings than RocketFuel Blockchain. RocketFuel Blockchain is trading at a lower price-to-earnings ratio than American Software, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares RocketFuel Blockchain and American Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RocketFuel Blockchain N/A -551.72% -414.75%
American Software 10.09% 9.77% 6.88%

Volatility and Risk

RocketFuel Blockchain has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, American Software has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for RocketFuel Blockchain and American Software, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RocketFuel Blockchain 0 0 0 0 N/A
American Software 0 1 3 0 2.75

American Software has a consensus price target of $32.33, suggesting a potential upside of 90.76%. Given American Software’s higher probable upside, analysts plainly believe American Software is more favorable than RocketFuel Blockchain.

Summary

American Software beats RocketFuel Blockchain on 11 of the 12 factors compared between the two stocks.

About RocketFuel Blockchain (Get Rating)

RocketFuel Blockchain, Inc. focuses on developing payment and check-out systems for purchases on e-commerce sites using cryptocurrencies and direct bank transfers. The company has a strategic partnership with ACI Worldwide, Inc. to offer the company's solution through a single integration enabling merchants to accept cryptocurrency payments with no processing fees. RocketFuel Blockchain, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.

About American Software (Get Rating)

American Software, Inc. develops, markets, and supports a range of computer business application software products in the United States and internationally. It operates through three segments: Supply Chain Management (SCM), Information Technology Consulting (IT Consulting), and Other. The SCM segment provides demand optimization, inventory optimization, supply optimization, retail optimization, quality and compliance, PLM, sourcing management, and integrated business planning services. The IT Consulting segment offers IT staffing and consulting services, such as software enhancement, documentation, update, customer education, consulting, systems integration, maintenance, and support services. The Other segment provides purchasing and materials management, customer order processing, financial, e-commerce, and traditional manufacturing solutions. The company markets its products through direct and indirect sales channels to the apparel and other soft goods, retail, food and beverage, consumer packaged goods, durable goods, chemical and process manufacturing, and life sciences industries. American Software, Inc. was incorporated in 1970 and is headquartered in Atlanta, Georgia.

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