Head to Head Contrast: Rightscorp (OTCMKTS:RIHT) & SPS Commerce (NASDAQ:SPSC)

Rightscorp (OTCMKTS:RIHT) and SPS Commerce (NASDAQ:SPSC) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Institutional & Insider Ownership

0.1% of Rightscorp shares are held by institutional investors. Comparatively, 99.0% of SPS Commerce shares are held by institutional investors. 1.0% of SPS Commerce shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Rightscorp and SPS Commerce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rightscorp	0	0	0	0	0.00
SPS Commerce	1	8	2	1	2.25

SPS Commerce has a consensus price target of $106.80, suggesting a potential upside of 30.74%. Given SPS Commerce’s stronger consensus rating and higher possible upside, analysts plainly believe SPS Commerce is more favorable than Rightscorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rightscorp	N/A	N/A	N/A
SPS Commerce	11.79%	12.10%	10.08%

Volatility & Risk

Rightscorp has a beta of -0.48, meaning that its share price is 148% less volatile than the S&P 500. Comparatively, SPS Commerce has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Valuation & Earnings

This table compares Rightscorp and SPS Commerce”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rightscorp	$290,000.00	12.17	-$410,000.00	N/A	N/A
SPS Commerce	$729.76 million	4.22	$77.05 million	$2.23	36.63

SPS Commerce has higher revenue and earnings than Rightscorp.

Summary

SPS Commerce beats Rightscorp on 12 of the 13 factors compared between the two stocks.

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.

About SPS Commerce

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.