Alliance Data Systems (ADS) vs. RightsCorp (RIHT) Head-To-Head Analysis

Alliance Data Systems (NYSE:ADS) and RightsCorp (OTCMKTS:RIHT) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Dividends

Alliance Data Systems pays an annual dividend of $2.28 per share and has a dividend yield of 1.1%. RightsCorp does not pay a dividend. Alliance Data Systems pays out 12.5% of its earnings in the form of a dividend.

Volatility and Risk

Alliance Data Systems has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, RightsCorp has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Valuation & Earnings

This table compares Alliance Data Systems and RightsCorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alliance Data Systems $7.72 billion 1.54 $788.70 million $18.28 11.83
RightsCorp $780,000.00 1.36 -$1.35 million N/A N/A

Alliance Data Systems has higher revenue and earnings than RightsCorp.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Alliance Data Systems and RightsCorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alliance Data Systems 1 6 13 0 2.60
RightsCorp 0 0 0 0 N/A

Alliance Data Systems currently has a consensus price target of $263.00, suggesting a potential upside of 21.66%. Given Alliance Data Systems’ higher probable upside, equities analysts clearly believe Alliance Data Systems is more favorable than RightsCorp.

Profitability

This table compares Alliance Data Systems and RightsCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alliance Data Systems 12.11% 56.33% 3.92%
RightsCorp N/A N/A N/A

Insider and Institutional Ownership

93.7% of Alliance Data Systems shares are owned by institutional investors. 2.6% of Alliance Data Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Alliance Data Systems beats RightsCorp on 12 of the 13 factors compared between the two stocks.

Alliance Data Systems Company Profile

Alliance Data Systems Corporation provides data-driven marketing and loyalty solutions worldwide. It operates through three segments: LoyaltyOne, Epsilon, and Card Services. The company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs. It also focuses on facilitating and managing interactions between its clients and their customers through various consumer marketing channels, including in-store, online, email, social media, mobile, direct mail, and telephone. The company captures and analyzes data created during each customer interaction, leveraging the insight derived from that data to enable clients to identify and acquire new customers and to enhance customer loyalty. It serves clients across various end-markets, including financial services, specialty retail, grocery and drugstore chains, petroleum retail, automotive, hospitality and travel, telecommunications, insurance, and healthcare. Alliance Data Systems Corporation was founded in 1996 and is headquartered in Plano, Texas.

RightsCorp Company Profile

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.

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