Contrasting Liquidity Services (LQDT) and Perficient (PRFT)

Liquidity Services (NASDAQ: LQDT) and Perficient (NASDAQ:PRFT) are both small-cap it services & consulting – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares Liquidity Services and Perficient’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liquidity Services $270.02 million 0.58 -$39.18 million ($1.25) -3.96
Perficient $486.98 million 1.42 $20.45 million $0.46 43.09

Perficient has higher revenue and earnings than Liquidity Services. Liquidity Services is trading at a lower price-to-earnings ratio than Perficient, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Liquidity Services and Perficient’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liquidity Services -14.51% -21.96% -13.65%
Perficient 3.36% 8.05% 6.15%

Insider and Institutional Ownership

66.6% of Liquidity Services shares are held by institutional investors. Comparatively, 79.7% of Perficient shares are held by institutional investors. 22.3% of Liquidity Services shares are held by company insiders. Comparatively, 3.7% of Perficient shares are held by company 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.

Volatility & Risk

Liquidity Services has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Perficient has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Liquidity Services and Perficient, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liquidity Services 0 1 0 0 2.00
Perficient 0 0 2 0 3.00

Perficient has a consensus price target of $21.50, indicating a potential upside of 8.48%. Given Perficient’s stronger consensus rating and higher probable upside, analysts plainly believe Perficient is more favorable than Liquidity Services.

Summary

Perficient beats Liquidity Services on 12 of the 14 factors compared between the two stocks.

About Liquidity Services

Liquidity Services, Inc. operates a network of e-commerce marketplaces that enable buyers and sellers to transact in an automated environment. The Company employs e-commerce marketplace solutions to manage, value and sell inventory and equipment for business and government clients. The Company’s marketplaces provide professional buyers access to a global supply of new, surplus and scrap assets presented with digital images and other relevant product information. Additionally, the Company enables its corporate and government sellers to enhance their financial return on assets offered for sale by providing a liquid marketplace and value-added services. The Company’s range of services include program management, valuation, asset management, reconciliation, Return to Vendor and Returns Management Authorization (RTV and RMA), refurbishment and recycling, fulfillment, marketing and sales, warehousing and transportation, buyer customer support, and compliance and risk mitigation.

About Perficient

Perficient, Inc. is an information technology and management consulting firm. The Company’s solutions include business intelligence and analytics, commerce, content management, custom applications, platform implementations, portals and collaboration, business integration and application program interfaces, management consulting, business process management, and customer relationship management, among others. It provides services to the healthcare (pharma and life sciences), financial services (banking and insurance), retail and consumer goods, automotive and transport products, electronics and computer hardware, telecommunications, manufacturing, business services, and leisure, and media and entertainment markets, among others.

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