Net Element (NASDAQ:NETE) and Her Imports (OTCMKTS:HHER) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Valuation and Earnings

This table compares Net Element and Her Imports’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Net Element $60.06 million 0.41 -$9.91 million ($5.04) -1.27
Her Imports $16.06 million 0.65 $920,000.00 N/A N/A

Her Imports has lower revenue, but higher earnings than Net Element.

Insider and Institutional Ownership

3.2% of Net Element shares are owned by institutional investors. 19.0% of Net Element shares are owned by insiders. Comparatively, 1.0% of Her Imports shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Net Element and Her Imports, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Net Element 0 0 0 0 N/A
Her Imports 0 0 0 0 N/A

Volatility and Risk

Net Element has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Her Imports has a beta of -15.39, meaning that its stock price is 1,639% less volatile than the S&P 500.

Profitability

This table compares Net Element and Her Imports’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Net Element -13.22% -88.17% -30.52%
Her Imports -24.00% -28.29% -25.53%

Summary

Net Element beats Her Imports on 5 of the 9 factors compared between the two stocks.

Net Element Company Profile

Net Element, Inc. operates as a financial technology and value-added solutions company. It operates in two segments, North American Transaction Solutions, and International Transaction Solutions. The company offers a range of payment acceptance and processing services that enable merchants of various sizes to accept and process approximately 100 payment options, including credit, debit, prepaid, and alternative payments; and value-added services and technologies, such as integrated payment technologies, point-of-sale solutions (POS), security solutions, fraud management, information solutions, and analytical tools. Its services include Unified Payments, a payment acceptance solution; Unified m-POS, an easy-to-use mobile application for small and medium sized businesses (SMB); Aptito, a cloud-based POS platform for the hospitality industry and SMB merchants; Restoactive, a visual POS integration solution for restaurants; Zero Pay, a payment acceptance program for SMB merchants; PayOnline, an integrated e-commerce and mobile payments processing platform, and fraud management system; Pay–Travel, a payment processing solutions to the travel industry; Sales Central, a cloud-based solution to enhance responsiveness of indirect non-bank sales forces and sales efficiency; Netevia, which delivers end-to-end payment processing through easy-to-use APIs; and Digital Provider, an integrated direct-carrier and mobile operator solution for smaller content providers and merchants throughout selected international markets. It operates in North America, Russia, Europe, Asia, and the Commonwealth of Independent States. The company was formerly known as Net Element International, Inc. and changed its name to Net Element, Inc. in December 2013. Net Element, Inc. was founded in 2004 and is based in North Miami Beach, Florida.

Her Imports Company Profile

Her Imports operates as a retailer of human hair extensions and related haircare and beauty products in the United States. It sells human hair products, including clip-ins and wigs under the Her Imports brand; haircare products, such as various shampoos and conditioners, and adhesives under the OSIworks brand; and beauty products and related accessories comprising silk bonnets, as well as styling tools under the Her Imports brand and makeup products under the Skin & Yang brand. The company also sells its products to consultation studios, as well as through its Website, herimports.com. As of December 31, 2017, it operated 24 retail locations. The company was formerly known as EZJR, Inc. and changed its name to Her Imports in January 2017. Her Imports was founded in 2011 and is headquartered in Las Vegas, Nevada.

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