Pulse Network (OTCMKTS:TPNI) versus SPAR Group (NASDAQ:SGRP) Critical Analysis

SPAR Group (NASDAQ:SGRP) and Pulse Network (OTCMKTS:TPNI) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings for SPAR Group and Pulse Network, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPAR Group	1	0	0	0	1.00
Pulse Network	0	0	0	0	0.00

Given Pulse Network’s higher probable upside, analysts clearly believe Pulse Network is more favorable than SPAR Group.

Earnings and Valuation

This table compares SPAR Group and Pulse Network”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPAR Group	$163.63 million	0.11	-$3.15 million	($0.07)	-10.47
Pulse Network	N/A	N/A	N/A	N/A	N/A

Pulse Network has lower revenue, but higher earnings than SPAR Group.

Risk and Volatility

SPAR Group has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Pulse Network has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Profitability

This table compares SPAR Group and Pulse Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPAR Group	-9.52%	-34.89%	-12.15%
Pulse Network	N/A	N/A	N/A

Insider and Institutional Ownership

9.6% of SPAR Group shares are held by institutional investors. 50.9% of SPAR Group shares are held by company insiders. Comparatively, 90.9% of Pulse Network shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Pulse Network beats SPAR Group on 6 of the 9 factors compared between the two stocks.

About SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.

About Pulse Network

The Pulse Network, Inc. provides a cloud-based platform that focuses on content marketing and event solutions in the United States. It operates a cloud-based content marketing platform, which enables corporate marketers and event groups in their campaign efforts. The company’s platform includes Content Marketing Platform that provides newsletters for outreach and engagement; Digital Publication Platform Creator, which develops digital publications; Video Webcast Production Platform that engages the audience with live video production, and enhances participation with live polls and chats; and Event Management Platform, which creates interactive customer experiences through registration and online engagement. Its platform also enhances registration counts through engagement and social sharing, and verification counts through connecting with the audience. In addition, the company offers ICTG platform, a marketing and follow up automation software; event management solution, an end-to-end tool for event groups worldwide; and HostMyLeads.com for lead management, as well as event technology, registration, lead generation, Web, and lead management program services for businesses, event organizers, and associations to engage with their community across channels, such as online, mobile, or face to face. Further, it provides Event Database Solutions comprising a multi-channel software-as-a-service platform for marketing support, registration, housing, management reporting, lead retrieval, online production, event Websites, and continuing education unit tracking, as well as services for marketing and event management. Additionally, the company offers content marketing tools that include syndication and distribution, social sharing, newsletter creation, analytics and reporting, prospect management, and other tools, as well as a content curation tool, which support the cloud-based platform. The Pulse Network, Inc. was founded in 1994 and is based in Norwood, Massachusetts.