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

Insider and Institutional Ownership

44.3% of Overstock.com shares are held by institutional investors. Comparatively, 37.4% of Points International shares are held by institutional investors. 28.9% of Overstock.com shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Overstock.com and Points International, as reported by MarketBeat.

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

Overstock.com currently has a consensus target price of $30.50, suggesting a potential upside of 5.90%. Points International has a consensus target price of $13.50, suggesting a potential upside of 14.31%. Given Points International’s higher probable upside, analysts clearly believe Points International is more favorable than Overstock.com.

Profitability

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

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Overstock.com $1.83 billion 0.39 -$1.70 million ($0.52) -55.38
Points International $332.82 million 0.52 $9.00 million ($0.11) -107.36

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 & Volatility

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

Summary

Points International beats Overstock.com on 9 of the 12 factors compared between the two stocks.

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.

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.

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