Analyzing QIWI (NASDAQ:QIWI) and PFSweb (NASDAQ:PFSW)

QIWI (NASDAQ:QIWIGet Rating) and PFSweb (NASDAQ:PFSWGet Rating) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

13.8% of QIWI shares are owned by institutional investors. Comparatively, 67.3% of PFSweb shares are owned by institutional investors. 8.4% of PFSweb shares are owned 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.

Earnings & Valuation

This table compares QIWI and PFSweb’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QIWI $585.30 million 0.61 $124.79 million $3.45 1.64
PFSweb $342.51 million 0.73 -$5.50 million $6.85 1.65

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

Risk and Volatility

QIWI has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, PFSweb has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for QIWI and PFSweb, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QIWI 0 1 0 0 2.00
PFSweb 0 0 1 0 3.00

PFSweb has a consensus target price of $13.00, indicating a potential upside of 14.84%. Given PFSweb’s stronger consensus rating and higher probable upside, analysts clearly believe PFSweb is more favorable than QIWI.

Profitability

This table compares QIWI and PFSweb’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QIWI 37.08% 28.48% 13.28%
PFSweb 47.57% -11.57% -4.32%

Summary

PFSweb beats QIWI on 10 of the 14 factors compared between the two stocks.

About QIWI (Get Rating)

Qiwi plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russia, Kazakhstan, Moldova, Belarus, Romania, the United Arab Emirates, and internationally. It operates through Payment Services, Consumer Financial Services, and Rocketbank segments. The company offers payment services across online, mobile, and physical channels through a network of approximately 94,000 kiosks and 19,000 terminals that run its proprietary software. It also provides Qiwi Wallet, which is an online and mobile payment processing, and money transfer system that allows customers to pay for the products and services of merchants, as well as perform peer-to-peer money transfers through a virtual wallet; and Visa-branded prepaid cards. In addition, the company offers payment-by installments card systems under the SOVEST brand name; and value added services. Further, it provides digital banking services to retail customers under the Rocketbank name; and to small and medium businesses under the Tochka name. Qiwi plc was incorporated in 2007 and is based in Nicosia, Cyprus.

About PFSweb (Get Rating)

PFSweb, Inc., together with its subsidiaries, provides omni-channel commerce solutions in the United States, Belgium, Bulgaria, the United Kingdom, Canada, and India. It operates in two segments, PFS Operations and LiveArea Professional Services. The PFS Operations segment offers order to cash service, which provides distributed order orchestration and payment processing; order fulfillment services; contact center services that are focused on providing essential services, such as order entry, returns authorization, product inquiry, and order tracking, as well as iCommerce Agent, a customizable web-based application for accessing required customer information. The LiveArea Professional Services offers NXT Intelligence, a collection of purpose-built solutions, which allow clients to assess opportunities across technology, innovation, and brand experience areas; service design, a business transformation service; product innovation services; and connected commerce services. This segment also provides performance marketing services, including search engine optimization, data analytics, conversion rate optimization, digital marketing, paid media, and email marketing; and orchestrated services that evaluate the right digital transformation strategies, mitigate workloads, manage infrastructure and backup, and secure data and applications. It serves clients in various industries, such as fashion apparel and accessories, fragrance and beauty products, health, luxury goods, cosmetics, consumer packaged goods, home furnishings and housewares, coins and collectibles, jewelry, consumer electronics, quick-serve restaurants, telecommunications, computer and office products, technology manufacturing, and other industries. PFSweb, Inc. was founded in 1994 and is headquartered in Allen, Texas.

Receive News & Ratings for QIWI Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for QIWI and related companies with MarketBeat.com's FREE daily email newsletter.