Analyzing MJ (OTCMKTS:MJNE) and Steel Connect (NASDAQ:STCN)

Steel Connect (NASDAQ:STCNGet Rating) and MJ (OTCMKTS:MJNEGet Rating) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Earnings & Valuation

This table compares Steel Connect and MJ’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Steel Connect $203.27 million 0.41 -$10.97 million $0.18 7.61
MJ $240,000.00 39.97 $3.53 million N/A N/A

MJ has lower revenue, but higher earnings than Steel Connect.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Steel Connect and MJ, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Steel Connect 0 0 0 0 N/A
MJ 0 0 0 0 N/A

Profitability

This table compares Steel Connect and MJ’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Steel Connect 4.88% N/A -9.49%
MJ N/A -239.84% -80.63%

Volatility & Risk

Steel Connect has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, MJ has a beta of -0.15, indicating that its share price is 115% less volatile than the S&P 500.

Insider and Institutional Ownership

47.2% of Steel Connect shares are held by institutional investors. Comparatively, 0.1% of MJ shares are held by institutional investors. 11.0% of Steel Connect shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Steel Connect beats MJ on 7 of the 9 factors compared between the two stocks.

About Steel Connect

(Get Rating)

Steel Connect, Inc. is a holding company, which engages in the provision of an end-to-end global supply chain solutions and e-commerce services. Its product aims to improve their clients’ global supply chain, speed to market, product customization, flexibility, cost, quality and service. The company was founded in 1986 and is headquartered in Smyrna, TN.

About MJ

(Get Rating)

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company was incorporated in 2006 and is based in Las Vegas, Nevada.

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