Head to Head Comparison: Alight (NYSE:ALIT) & Perfect (NYSE:PERF)

Perfect (NYSE:PERF) and Alight (NYSE:ALIT) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Valuation and Earnings

This table compares Perfect and Alight”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perfect	$69.15 million	2.40	$4.64 million	$0.05	32.60
Alight	$2.26 billion	0.14	-$3.10 billion	($5.88)	-0.10

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

Insider & Institutional Ownership

96.7% of Alight shares are held by institutional investors. 44.7% of Perfect shares are held by company insiders. Comparatively, 1.9% of Alight shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Perfect has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Alight has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Profitability

This table compares Perfect and Alight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perfect	6.71%	2.42%	1.92%
Alight	-136.91%	9.61%	4.03%

Analyst Recommendations

This is a summary of current recommendations and price targets for Perfect and Alight, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perfect	1	1	0	0	1.50
Alight	2	3	3	0	2.13

Alight has a consensus price target of $3.56, indicating a potential upside of 515.42%. Given Alight’s stronger consensus rating and higher probable upside, analysts clearly believe Alight is more favorable than Perfect.

Summary

Alight beats Perfect on 8 of the 14 factors compared between the two stocks.

About Perfect

Perfect Corp. is a software as a service technology company, which engages in the business of developing makeup virtual try-on solutions. Its solutions include virtual try-ons for makeup, nail art, hairstyles, beard dye and styling, eyewear, jewelry, advanced skin diagnostic technology, foundation shade finder, and interactive artificial reality makeup application tutorial platform. Its brands include Estée Lauder, Clinique, MAC, e.l.e., benefit, Sally Hansen, Belcorp, Decorté, NARS, Aveda, Madisonreed, kate, Sofina iP, Jillstuart, Cosnova, Beekman, Marianna, Ardell, tarte, and Coffret D’or. It operates through the following geographical segments: United States, Japan, France, and Others. The company was founded by Alice H. Chang on February 13, 2015 and is headquartered in New Taipei, Taiwan.

About Alight

Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.