Analyzing Points International (PCOM) & Overstock.com (OSTK)

Points International (NASDAQ: PCOM) and Overstock.com (NASDAQ:OSTK) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Points International $332.82 million 0.48 $9.00 million ($0.11) -98.18
Overstock.com $1.83 billion 0.46 -$1.70 million ($0.52) -65.00

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

Risk and Volatility

Points International has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Overstock.com has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Points International and Overstock.com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Points International 0 0 3 0 3.00
Overstock.com 0 0 2 0 3.00

Points International currently has a consensus price target of $13.50, indicating a potential upside of 25.00%. Overstock.com has a consensus price target of $30.50, indicating a potential downside of 9.76%. Given Points International’s higher probable upside, analysts clearly believe Points International is more favorable than Overstock.com.

Profitability

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

Net Margins Return on Equity Return on Assets
Points International -0.53% 7.56% 3.28%
Overstock.com -0.73% -6.36% -2.38%

Insider & Institutional Ownership

37.4% of Points International shares are held by institutional investors. Comparatively, 44.4% of Overstock.com shares are held by institutional investors. 28.9% of Overstock.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Points International beats Overstock.com on 9 of the 12 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 Overstock.com

Overstock.com, Inc. is an online retailer and incubator of blockchain technology. Through its online retail business, the Company offers a range of price-competitive brand name, non-brand name and closeout products, including furniture, home decor, bedding and bath, housewares, jewelry and watches, apparel and designer accessories, health and beauty products, electronics and computers, and sporting goods. It operates Retail and Medici businesses. Its Retail business consists of its Direct and Partner segments. Its Other segment consists of Medici. The Company also sells various books, magazines, compact discs (CDs), digital versatile discs (DVDs) and video games. The Company sells these products and services through its Internet Websites located at www.overstock.com, www.o.co and www.o.biz. The Company’s other offerings include Worldstock Fair Trade, Main Street Revolution, Farmers Market, Pet Adoptions, Insurance and Supplier Oasis.

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