Comparing Winland Electronics (OTCMKTS:WELX) and FlexShopper (NASDAQ:FPAY)

Winland Electronics (OTCMKTS:WELX) and FlexShopper (NASDAQ:FPAY) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Winland Electronics and FlexShopper, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winland Electronics	0	0	0	0	0.00
FlexShopper	1	0	1	0	2.00

FlexShopper has a consensus target price of $0.50, indicating a potential upside of 0.00%. Given FlexShopper’s stronger consensus rating and higher possible upside, analysts plainly believe FlexShopper is more favorable than Winland Electronics.

Institutional and Insider Ownership

19.4% of FlexShopper shares are owned by institutional investors. 8.1% of Winland Electronics shares are owned by insiders. Comparatively, 30.2% of FlexShopper shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Winland Electronics and FlexShopper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winland Electronics	N/A	N/A	N/A
FlexShopper	N/A	N/A	N/A

Risk and Volatility

Winland Electronics has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, FlexShopper has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Valuation and Earnings

This table compares Winland Electronics and FlexShopper”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winland Electronics	$5.81 million	2.10	-$520,000.00	$0.50	4.80
FlexShopper	$139.80 million	0.00	-$180,000.00	($0.23)	N/A

FlexShopper has higher revenue and earnings than Winland Electronics. FlexShopper is trading at a lower price-to-earnings ratio than Winland Electronics, indicating that it is currently the more affordable of the two stocks.

Summary

FlexShopper beats Winland Electronics on 7 of the 10 factors compared between the two stocks.

About Winland Electronics

Winland Holdings Corporation, through its subsidiaries, provides critical condition monitoring devices to the security industry. Its products are used to protect against loss of assets due to damage from water, excess humidity, extremes of temperature, and loss of power. The company offers EnviroAlert, which monitors temperature, humidity, and/or water presence in critical environments; TempAlert, a temperature monitoring device for residential and commercial environments through security systems; WaterBug, a water presence and leak detection system; and Power-Out Alert, a power outage detector. It also provides INSIGHT, an automated cloud-based platform that offers early alerting, reporting, and logging services designed to ensure regulatory compliance. The company offers its products through a network of distributors, dealers, security installers, and integrators for industries including health and medical, grocery and food services, and commercial and industrial, as well as agriculture and residential. Winland Holdings Corporation was incorporated in 1972 and is headquartered in Mankato, Minnesota.

About FlexShopper

FlexShopper, Inc., a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, such as tablets and wearables; smartphones; tires; and jewelry and furniture, including accessories. It also provides payment options to consumers. The company offers its products under the LG, Samsung, Sony, TCL, Frigidaire, General Electric, Whirlpool, Apple, Asus, Dell, Hewlett Packard, Toshiba, Resident, Sealy, and Ashley brands. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is headquartered in Boca Raton, Florida.