Rediff.com India (OTCMKTS:REDFY) and TheStreet (NASDAQ:TST) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

52.2% of TheStreet shares are owned by institutional investors. 70.7% of Rediff.com India shares are owned by insiders. Comparatively, 30.0% of TheStreet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Rediff.com India and TheStreet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rediff.com India N/A N/A N/A N/A N/A
TheStreet $62.47 million 1.65 $2.62 million $0.08 26.00

TheStreet has higher revenue and earnings than Rediff.com India.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Rediff.com India and TheStreet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rediff.com India 0 0 0 0 N/A
TheStreet 0 0 1 0 3.00

TheStreet has a consensus price target of $3.00, suggesting a potential upside of 44.23%. Given TheStreet’s higher probable upside, analysts clearly believe TheStreet is more favorable than Rediff.com India.

Profitability

This table compares Rediff.com India and TheStreet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rediff.com India N/A N/A N/A
TheStreet 49.30% 2.33% 1.38%

Risk & Volatility

Rediff.com India has a beta of 3.58, indicating that its share price is 258% more volatile than the S&P 500. Comparatively, TheStreet has a beta of -0.14, indicating that its share price is 114% less volatile than the S&P 500.

Summary

TheStreet beats Rediff.com India on 7 of the 9 factors compared between the two stocks.

Rediff.com India Company Profile

Rediff.com India Limited provides online Internet based services in India and to the global Indian community. The company operates in two segments, India Online Business and US Publishing Business. Its Websites consist of channels relevant to Indian interests, such as cricket, astrology, matchmaker, and movies; content on various matters, including news and finance; search facilities; a range of community features comprising e-mail, chat, messenger, e-commerce, and broadband wireless content; and mobile value-added services, such as ring tones, picture messages, logos, wallpapers, and other related products to mobile phone users. The company also enables its customers to insert localized advertisements on national television channels by providing a platform to create an advertisement and prepare a media plan; and publishes two weekly newspapers in North America, including India Abroad and India in New York. In addition, it offers Moneywiz that provides stock market quotes, company information, and a personal portfolio tracker, as well as business news, feature articles, expert columns, and interviews; Rediff Blogs, which enables users to set up their own blogs and publish their thoughts and ideas directly and instantly on the Web; Rediff iShare, a video sharing platform; Rediff MyPage, a free online social networking product; and Get Ahead, an editorial content channel that supports a forum for questions and answers. Further, the company operates Rediff Shopping, an online marketplace which allows users to purchase products and services listed on its platform by various merchants; and offers e-mail solutions, such as Rediffmail, its flagship e-mail service, and Rediffmail PRO for small and medium sized enterprise segment. Rediff.com India Limited was founded in 1996 and is headquartered in Mumbai, India.

TheStreet Company Profile

TheStreet, Inc., a financial news and information provider, provides business to business (B2B) and business to consumer (B2C) content and products worldwide. The company operates through three segments: TheDeal/BoardEx, RateWatch, and Business to Consumer. Its B2B products include The Deal, a digital subscription model that delivers coverage primarily to institutional investors on changes in corporate control comprising merges and acquisitions, private equity, corporate activism, and restructuring; and BoardEx, an institutional relationship capital management database and platform, which holds profiles of approximately 1 million business leaders. The company's B2B products also consist of RateWatch, which publishes bank rate market information, such as competitive deposit, loan, and fee rate data for financial institutions, government agencies, academic researchers, banks, credit unions, and other commercial organizations. Its RateWatch product also offers banking-related product and fee comparisons, financial strength reporting, educational Webinars, mystery shopping, and consumer and financial institution surveys. The company's B2C products comprise TheStreet.com, an advertising-supported digital platform that provides business news and market analysis to individual investors; RealMoney and RealMoney Pro, which offer market commentary and analysis for active market participants and self-directed investors; and Action Alerts PLUS that teaches consumers on how to manage money for long term. TheStreet, Inc. was founded in 1996 and is headquartered in New York, New York.

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