Head to Head Review: Rightscorp (OTCMKTS:RIHT) and SPS Commerce (NASDAQ:SPSC)

SPS Commerce (NASDAQ:SPSC) and Rightscorp (OTCMKTS:RIHT) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Valuation & Earnings

This table compares SPS Commerce and Rightscorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPS Commerce	$729.76 million	4.24	$77.05 million	$2.23	36.79
Rightscorp	$290,000.00	12.17	-$410,000.00	N/A	N/A

SPS Commerce has higher revenue and earnings than Rightscorp.

Profitability

This table compares SPS Commerce and Rightscorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPS Commerce	11.79%	12.10%	10.08%
Rightscorp	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for SPS Commerce and Rightscorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	1	7	3	1	2.33
Rightscorp	0	0	0	0	0.00

SPS Commerce presently has a consensus target price of $110.80, indicating a potential upside of 35.06%. Given SPS Commerce’s stronger consensus rating and higher probable upside, equities analysts plainly believe SPS Commerce is more favorable than Rightscorp.

Institutional and Insider Ownership

99.0% of SPS Commerce shares are owned by institutional investors. Comparatively, 0.1% of Rightscorp shares are owned by institutional investors. 1.0% of SPS Commerce shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

SPS Commerce has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Rightscorp has a beta of -0.48, suggesting that its share price is 148% less volatile than the S&P 500.

Summary

SPS Commerce beats Rightscorp on 12 of the 13 factors compared between the two stocks.

About SPS Commerce

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

About Rightscorp

Rightscorp, Inc. operates as a technology company that has a patent-pending proprietary method for collecting payments from illegal downloaders of copyrighted content through notifications sent to their Internet service providers (ISP’s). The company’s technology system monitors peer-to-peer file sharing networks and sends through email to ISP’s notifications of copyright infringement by the ISPs’ customers with date, time, copyright title, and other specific technology identifiers worldwide. It primarily serves copyright holders. The company was founded in 2010 and is headquartered in Santa Monica, California.