Critical Review: FiscalNote (NYSE:NOTE) vs. Rightscorp (OTCMKTS:RIHT)

FiscalNote (NYSE:NOTE) and Rightscorp (OTCMKTS:RIHT) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Profitability

This table compares FiscalNote and Rightscorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FiscalNote	-101.78%	-121.46%	-26.83%
Rightscorp	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for FiscalNote and Rightscorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FiscalNote	0	2	4	0	2.67
Rightscorp	0	0	0	0	N/A

FiscalNote presently has a consensus target price of $4.44, suggesting a potential upside of 263.73%. Given FiscalNote’s higher probable upside, equities research analysts clearly believe FiscalNote is more favorable than Rightscorp.

Volatility and Risk

FiscalNote has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Rightscorp has a beta of -0.57, meaning that its stock price is 157% less volatile than the S&P 500.

Institutional and Insider Ownership

54.3% of FiscalNote shares are owned by institutional investors. Comparatively, 0.1% of Rightscorp shares are owned by institutional investors. 50.8% of FiscalNote shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares FiscalNote and Rightscorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FiscalNote	$132.65 million	1.20	-$115.46 million	($0.87)	-1.40
Rightscorp	N/A	N/A	N/A	N/A	N/A

Rightscorp has lower revenue, but higher earnings than FiscalNote.

Summary

FiscalNote beats Rightscorp on 6 of the 9 factors compared between the two stocks.

About FiscalNote

FiscalNote Holdings, Inc. operates as technology company North America, Europe, Australia, and Asia. It combines artificial intelligence technology, machine learning, and other technologies with analytics, workflow tools, and expert research. The company also delivers that intelligence through its suite of public policy and issues management products, as well as powerful tools to manage workflows, advocacy campaigns, and constituent relationships. It serves a customer base that includes businesses comprising the Fortune 100 companies, government agencies, law firms, professional services organizations, trade groups, and non-profits. FiscalNote Holdings, Inc. is headquartered in Washington, District Of Columbia.

About Rightscorp

Rightscorp, Inc. operates as a technology company that has a patent-pending proprietary method for collecting payments from illegal downloaders of copyrighted content through notifications sent to their Internet service providers (ISP's). The company's technology system monitors peer-to-peer file sharing networks and sends through email to ISP's notifications of copyright infringement by the ISPs' customers with date, time, copyright title, and other specific technology identifiers worldwide. It primarily serves copyright holders. The company was founded in 2010 and is headquartered in Santa Monica, California.