Alight (NYSE:ALIT) & Perfect (NYSE:PERF) Financial Contrast

Alight (NYSE:ALIT) and Perfect (NYSE:PERF) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Earnings and Valuation

This table compares Alight and Perfect”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alight	$2.26 billion	0.13	-$3.10 billion	($5.88)	-0.09
Perfect	$69.15 million	2.47	$4.64 million	$0.05	33.60

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

Risk and Volatility

Alight has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Perfect has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Insider & Institutional Ownership

96.7% of Alight shares are owned by institutional investors. 1.9% of Alight shares are owned by company insiders. Comparatively, 44.7% of Perfect shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Alight and Perfect’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alight	-136.91%	9.61%	4.03%
Perfect	6.71%	2.42%	1.92%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Alight and Perfect, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alight	2	3	3	0	2.13
Perfect	1	1	0	0	1.50

Alight presently has a consensus target price of $3.56, suggesting a potential upside of 543.24%. Given Alight’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Alight is more favorable than Perfect.

Summary

Alight beats Perfect on 8 of the 14 factors compared between the two stocks.

About Alight

Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.

About Perfect

Perfect Corp. is a software as a service technology company, which engages in the business of developing makeup virtual try-on solutions. Its solutions include virtual try-ons for makeup, nail art, hairstyles, beard dye and styling, eyewear, jewelry, advanced skin diagnostic technology, foundation shade finder, and interactive artificial reality makeup application tutorial platform. Its brands include Estée Lauder, Clinique, MAC, e.l.e., benefit, Sally Hansen, Belcorp, Decorté, NARS, Aveda, Madisonreed, kate, Sofina iP, Jillstuart, Cosnova, Beekman, Marianna, Ardell, tarte, and Coffret D’or. It operates through the following geographical segments: United States, Japan, France, and Others. The company was founded by Alice H. Chang on February 13, 2015 and is headquartered in New Taipei, Taiwan.