Cnova NV (NASDAQ: CNV) and Points International (NASDAQ:PCOM) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

3.0% of Cnova NV shares are held by institutional investors. Comparatively, 37.4% of Points International shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Cnova NV and Points International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cnova NV -3.30% N/A -6.49%
Points International -0.53% 7.56% 3.28%

Volatility and Risk

Cnova NV has a beta of 2.64, indicating that its share price is 164% more volatile than the S&P 500. Comparatively, Points International has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Cnova NV and Points International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cnova NV 0 1 0 0 2.00
Points International 0 0 3 0 3.00

Points International has a consensus price target of $13.50, suggesting a potential upside of 22.95%. Given Points International’s stronger consensus rating and higher possible upside, analysts plainly believe Points International is more favorable than Cnova NV.

Earnings & Valuation

This table compares Cnova NV and Points International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cnova NV N/A N/A N/A ($0.94) -5.64
Points International $332.82 million 0.49 $9.00 million ($0.11) -99.82

Points International has higher revenue and earnings than Cnova NV. Points International is trading at a lower price-to-earnings ratio than Cnova NV, indicating that it is currently the more affordable of the two stocks.

Summary

Points International beats Cnova NV on 9 of the 10 factors compared between the two stocks.

About Cnova NV

Cnova N.V. is an e-commerce company with its two markets in France and Brazil. The Company offers differentiated delivery and payment solutions. It operates through three segments: Cdiscount France, Cdiscount International and Cnova Brazil. The Cdiscount France segment is engaged in the retail sales of consumer products through Cdiscount.com and specialized Websites in France. The Cdiscount International segment is engaged in retail sales of consumer products through Websites created by Cdiscount S.A. (Cdiscount) outside of France. The Cnova Brazil segment is engaged in retail sales of consumer products through Websites in Brazil, including Extra.com.br, PontoFrio.com.br, CasasBahia.com.br, Barateiro.com.br, PartiuViagens.com.br, and wholesale activities and E-Hub. As of December 31, 2015, it offered over 29 million product offerings on its sites through its direct sales and marketplace businesses across various categories, such as consumer electronics, home appliances and computers.

About Points International

Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com Website. It also offers Points Travel, which is private label travel e-commerce platform designed specifically for the loyalty industry. The Company operates the PointsHound.com Website, a hotel booking engine and loyalty currency aggregator built specifically for frequent travelers.

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