Financial Contrast: LightInTheBox (NYSE:LITB) & QuinStreet (NASDAQ:QNST)

QuinStreet (NASDAQ:QNST) and LightInTheBox (NYSE:LITB) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Earnings and Valuation

This table compares QuinStreet and LightInTheBox”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuinStreet	$613.51 million	1.43	-$31.33 million	($0.01)	-1,555.00
LightInTheBox	$255.29 million	0.10	-$2.49 million	$0.10	14.50

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

Profitability

This table compares QuinStreet and LightInTheBox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuinStreet	-0.06%	1.08%	0.61%
LightInTheBox	0.63%	-11.29%	2.04%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuinStreet	0	1	4	0	2.80
LightInTheBox	0	0	0	0	0.00

QuinStreet currently has a consensus target price of $29.00, indicating a potential upside of 86.50%. Given QuinStreet’s stronger consensus rating and higher possible upside, research analysts clearly believe QuinStreet is more favorable than LightInTheBox.

Risk & Volatility

QuinStreet has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, LightInTheBox has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Institutional & Insider Ownership

97.8% of QuinStreet shares are held by institutional investors. Comparatively, 56.8% of LightInTheBox shares are held by institutional investors. 5.0% of QuinStreet shares are held by company insiders. Comparatively, 62.2% of LightInTheBox shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

QuinStreet beats LightInTheBox on 8 of the 14 factors compared between the two stocks.

About QuinStreet

QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. The company offers online marketing services, such as qualified clicks, leads, calls, applications, and customers through its websites or third-party publishers. It serves financial and home services industries. The company was incorporated in 1999 and is headquartered in Foster City, California.

About LightInTheBox

LightInTheBox Holding Co., Ltd., together with its subsidiaries, operates as an online retailer that delivers products directly to its consumers worldwide. The company provides apparel products; and other general merchandise products, such as small accessories and gadgets, home garden, toys and hobbies, electronics and communication devices, and other products. It also offers supplier chain management, research and development, customer, marketing, warehouse management, local delivery, and fulfillment services, as well as engages in the product sourcing, marketing, and operation of its websites and mobile applications. The company provides its products through www.lightinthebox.com and www.ezbuy.sg, and other websites and mobile applications. LightInTheBox Holding Co., Ltd. was founded in 2007 and is based in Singapore.