SpendSmart Networks (OTCMKTS:SSPC) and Sally Beauty (NYSE:SBH) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for SpendSmart Networks and Sally Beauty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SpendSmart Networks 0 0 0 0 N/A
Sally Beauty 4 8 0 0 1.67

Sally Beauty has a consensus price target of $16.00, suggesting a potential downside of 26.44%. Given Sally Beauty’s higher possible upside, analysts clearly believe Sally Beauty is more favorable than SpendSmart Networks.

Earnings & Valuation

This table compares SpendSmart Networks and Sally Beauty’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SpendSmart Networks $5.79 million 0.04 -$3.32 million N/A N/A
Sally Beauty $3.94 billion 0.66 $215.07 million $2.16 10.07

Sally Beauty has higher revenue and earnings than SpendSmart Networks.

Risk & Volatility

SpendSmart Networks has a beta of -0.15, indicating that its share price is 115% less volatile than the S&P 500. Comparatively, Sally Beauty has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Profitability

This table compares SpendSmart Networks and Sally Beauty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SpendSmart Networks N/A N/A N/A
Sally Beauty 6.05% -76.04% 12.15%

Summary

Sally Beauty beats SpendSmart Networks on 7 of the 8 factors compared between the two stocks.

About SpendSmart Networks

SpendSmart Networks, Inc., doing business as SMS Masterminds, provides proprietary loyalty systems, and a suite of digital engagement and marketing services to merchants. It delivers and manages loyalty platforms, such as merchant funded rewards, loyalty rewards tablets/kiosks, and proprietary rewards management systems; and mobile marketing technology, including text and email messaging, customer analytics and propensity marketing, patent pending automated engagement engine, and Text2Win sweepstakes features. The company also delivers and manages enterprise level loyalty and mobile marketing consulting comprising monthly hands on reviews by its Certified Masterminds, campaign creation and optimization, and localized support. In addition, it delivers and manages proprietary mobile-responsive Website building platform, which includes software allowing licensees and merchants to create and administer their Websites, audits of existing merchant Websites, and integration of social media streams and consumer reviews into Websites. The company was formerly known as The SpendSmart Payments Company, Inc. and changed its name to SpendSmart Networks, Inc. in June 2014. SpendSmart Networks, Inc. was founded in 2007 and is headquartered in San Luis Obispo, California.

About Sally Beauty

Sally Beauty Holdings, Inc., together with its subsidiaries, operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care, skin and nail care, beauty sundries, and styling tools for retail customers and salon professionals. This segment also provides products under third-party brands, such as OPI, China Glaze, Wella, Clairol, Conair, and Hot Shot Tools, as well as exclusive-label merchandise. As of September 30, 2017, it operated 3,763 company-operated retail stores with 2,883 stores in the United States, including Puerto Rico; and 880 company-operated stores located in Canada, Mexico, the United Kingdom, Ireland, Belgium, France, Germany, the Netherlands, Spain, Chile, and Peru under the Sally Beauty banner, as well as 19 franchised stores in the United Kingdom, Belgium, and certain other European countries. The Beauty Systems Group segment offers professional beauty products, including hair color and care, skin and nail care, beauty sundries, and styling tools directly to salons and salon professionals through its sales force, as well as through company-operated and franchised stores. This segment also sells products under third-party brands, such as Paul Mitchell, Wella, Schwarzkopf, Kenra, Goldwell, Joico, and Aquage. This segment had 1,200 company-operated stores with 1,099 located in the United States, including Puerto Rico; and 101 retail stores located in Canada under the CosmoProf banner in the United States and Canada, as well as 168 franchised stores under the Armstrong McCall name in the United States, Canada, and Mexico. The company also distributes its products through full-service/exclusive distribution, open-line distribution, and direct and mega-salon stores. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas.

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