Riskified (NYSE:RSKD) and Perfect (NYSE:PERF) Head-To-Head Contrast

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

Volatility & Risk

Perfect has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Riskified has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perfect	$69.15 million	2.84	$4.64 million	$0.06	32.17
Riskified	$344.64 million	2.61	-$27.57 million	($0.11)	-55.14

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Perfect	8.13%	3.73%	2.98%
Riskified	-4.23%	-3.93%	-2.79%

Insider & Institutional Ownership

59.0% of Riskified shares are held by institutional investors. 44.7% of Perfect shares are held by insiders. Comparatively, 17.4% of Riskified shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Perfect and Riskified, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perfect	1	2	0	0	1.67
Riskified	2	3	2	0	2.00

Riskified has a consensus price target of $6.50, indicating a potential upside of 7.17%. Given Riskified’s stronger consensus rating and higher probable upside, analysts clearly believe Riskified is more favorable than Perfect.

Summary

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

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.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.