Reviewing Steel Connect (NASDAQ:STCN) and International Money Express (NASDAQ:IMXI)

Steel Connect (NASDAQ:STCN) and International Money Express (NASDAQ:IMXI) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Profitability

This table compares Steel Connect and International Money Express’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Steel Connect -4.44% -23.39% -2.92%
International Money Express N/A 1.17% 0.37%

Institutional & Insider Ownership

51.1% of Steel Connect shares are held by institutional investors. Comparatively, 31.6% of International Money Express shares are held by institutional investors. 12.5% of Steel Connect shares are held by insiders. Comparatively, 43.1% of International Money Express shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Steel Connect and International Money Express’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Steel Connect $645.26 million 0.17 $36.71 million N/A N/A
International Money Express $273.90 million 2.00 -$7.24 million ($0.05) -288.60

Steel Connect has higher revenue and earnings than International Money Express.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Steel Connect and International Money Express, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Steel Connect 0 0 0 0 N/A
International Money Express 0 0 6 0 3.00

International Money Express has a consensus price target of $15.00, suggesting a potential upside of 3.95%. Given International Money Express’ higher possible upside, analysts clearly believe International Money Express is more favorable than Steel Connect.

Summary

International Money Express beats Steel Connect on 7 of the 10 factors compared between the two stocks.

About Steel Connect

Steel Connect, Inc., through its subsidiaries, provides supply chain and logistics services to the consumer electronics, communications, computing, medical devices, software, storage, retail, and other industries. It operates through five segments: Americas, Asia, Europe, Direct Marketing, and e-Business. The company offers product configuration and packaging, kitting, and assembly of components and parts into finished goods; and value-added processes, such as product testing, radio frequency identification (RFID) tagging, product or service activation, language settings, personalization and engraving, multi-channel packaging, and packaging design services. It also provides fulfillment services, including order management, pick, pack and ship, retail compliance, and demand planning services; and content protection and activation, and IP security services, as well as optimizes component and finished goods inventory levels. In addition, it offers operates a cloud-based e-commerce platform, which online buying experience so that products can be purchased, serviced, and delivered worldwide; and provides reverse logistics services that simplifies the returns process for retailers and manufacturers to improve service parts management and the value of returned assets. Further, the company offers EZ Connect service, which provides essential fulfillment capabilities for emerging growth companies without the expensive surprises associated with third-party fulfillment services; and direct marketing services comprising end-to-end services for paper-based direct marketing and omnichannel marketing campaign services. The company was formerly known as ModusLink Global Solutions, Inc. and changed its name to Steel Connect, Inc. in February 2018. Steel Connect, Inc. was incorporated in 1986 and is headquartered in Waltham, Massachusetts.

About International Money Express

International Money Express, Inc., through its subsidiary, operates as a money remittance services company in the United States, Latin America, Mexico, Central and South America, and the Caribbean. The company offers remittance services, including a suite of ancillary financial processing solutions and payment services. It provides services through sending and paying agents and company-operated stores, as well as through online and Internet-enabled mobile devices. The company was formerly known as FinTech Acquisition Corp. II. International Money Express, Inc. is headquartered in Miami, Florida.

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