Moneygram International (NASDAQ:MGI) and Rimini Street (NASDAQ:RMNI) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Profitability

This table compares Moneygram International and Rimini Street’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moneygram International -4.68% -3.29% -0.05%
Rimini Street 1.56% -8.14% 13.80%

Analyst Ratings

This is a breakdown of current ratings for Moneygram International and Rimini Street, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moneygram International 1 3 0 0 1.75
Rimini Street 0 1 0 0 2.00

Moneygram International currently has a consensus target price of $2.25, indicating a potential upside of 63.04%. Given Moneygram International’s higher probable upside, equities analysts plainly believe Moneygram International is more favorable than Rimini Street.

Insider & Institutional Ownership

32.1% of Moneygram International shares are held by institutional investors. Comparatively, 49.2% of Rimini Street shares are held by institutional investors. 45.7% of Moneygram International shares are held by insiders. Comparatively, 64.3% of Rimini Street shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Moneygram International and Rimini Street’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Moneygram International $1.29 billion 0.07 -$60.30 million ($0.06) -23.00
Rimini Street $281.05 million 0.96 $17.53 million $0.25 15.80

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

Summary

Rimini Street beats Moneygram International on 8 of the 12 factors compared between the two stocks.

About Moneygram International

MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally. The company operates through two segments, Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment offers money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products segment provides money orders to consumers through its agents and financial institutions; and official check outsourcing services for financial institutions. This segment sells its money orders under the MoneyGram brand and on a private label or co-branded basis with retail and financial institution. The company also offers digital solutions, such as moneygram.com, mobile solutions, account deposit, and kiosk-based services. MoneyGram International, Inc. was founded in 1940 and is based in Dallas, Texas.

About Rimini Street

Rimini Street, Inc. provides enterprise software products and services for various industries. The company offers third-party support for Oracle and SAP software products. It sells its solutions primarily through direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia-Pacific. The company was founded in 2005 and is headquartered in Las Vegas, Nevada.

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