Financial Review: AutoNavi (NASDAQ:AMAP) & PFSweb (PFSW)

PFSweb (NASDAQ: PFSW) and AutoNavi (NASDAQ:AMAP) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Profitability

This table compares PFSweb and AutoNavi’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PFSweb -3.30% 1.98% 0.40%
AutoNavi N/A N/A N/A

Institutional & Insider Ownership

58.3% of PFSweb shares are held by institutional investors. 5.2% of PFSweb shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PFSweb 0 2 4 0 2.67
AutoNavi 0 0 0 0 N/A

PFSweb presently has a consensus price target of $10.70, indicating a potential upside of 37.71%. Given PFSweb’s higher possible upside, research analysts plainly believe PFSweb is more favorable than AutoNavi.

Volatility and Risk

PFSweb has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, AutoNavi has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Earnings & Valuation

This table compares PFSweb and AutoNavi’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PFSweb $334.64 million 0.44 -$7.53 million ($0.60) -12.95
AutoNavi N/A N/A N/A ($1.42) -14.72

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

Summary

PFSweb beats AutoNavi on 9 of the 11 factors compared between the two stocks.

About PFSweb

PFSWEB, Inc. is a global provider of omni-channel commerce solutions, including a range of technology, infrastructure and professional services. The Company’s service offerings include Website design, creation and integration, digital agency and marketing, e-commerce technologies, order management, customer care, logistics and fulfillment, financial management and professional consulting. It operates through two segments: PFSweb, and Business and Retail Connect. PFSweb is a global provider of various infrastructure, technology and digital agency solutions and operates as a service fee business. In the Business and Retail Connect segment, subsidiaries of the Company purchase inventory from clients and resell the inventory to client customers. Its solutions support direct-to-consumer (DTC), business-to-business (B2B) and retail sales channels. It markets its solutions as PFSweb’s End2End eCommerce solution.

About AutoNavi

AutoNavi Holdings Limited is a provider of digital map content and navigation and location-based solutions in China. The service platform also enables the Company to move away from a pure business-to-business (B2B), model to a combined B2B and business-to-consumer (B2C), model. As of December 31, 2012, the core of its business is its nationwide digital map database that covered approximately 3.6 million kilometers of roadway and over 22 million points of interest across China. In addition, the Company had completed three dimensional (3-D) navigation maps of key areas in 60 cities and photo-realistic 3-D models of 35 cities for public sector projects. In February 2012, the Company and TomTom NV introduced HD Traffic. Effective December 12, 2013, Autonavi Holdings Limited acquired Alohar Mobile Inc. In July 2014, AutoNavi Holdings Ltd announced the completion of the merger with Ali ET Investment Holding Limited (Merger Sub), a subsidiary of Alibaba Investment Limited (Parent).

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