Critical Review: DKSH (OTCMKTS:DKSHF) & Research Solutions (NASDAQ:RSSS)

DKSH (OTCMKTS:DKSHF) and Research Solutions (NASDAQ:RSSS) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Insider & Institutional Ownership

13.4% of DKSH shares are owned by institutional investors. Comparatively, 33.6% of Research Solutions shares are owned by institutional investors. 10.9% of Research Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for DKSH and Research Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DKSH	0	0	1	0	3.00
Research Solutions	0	2	3	0	2.60

Research Solutions has a consensus price target of $3.83, indicating a potential upside of 72.28%. Given Research Solutions’ higher possible upside, analysts clearly believe Research Solutions is more favorable than DKSH.

Valuation and Earnings

This table compares DKSH and Research Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DKSH	N/A	N/A	N/A	$154.08	0.50
Research Solutions	$49.06 million	1.52	$1.27 million	$0.14	15.89

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

Profitability

This table compares DKSH and Research Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DKSH	N/A	N/A	N/A
Research Solutions	9.28%	27.45%	9.94%

Summary

Research Solutions beats DKSH on 9 of the 11 factors compared between the two stocks.

About DKSH

DKSH Holding AG provides various market expansion services in Thailand, Greater China, Malaysia, Singapore, rest of the Asia Pacific, and internationally. The company offers sourcing, market insights, marketing, sales, eCommerce, distribution, logistics, and after-sales services. It operates through four segments: Healthcare, Consumer Goods, Performance Materials, and Technology. The Healthcare segment provides various services, such as registration, regulatory, market entry studies, importation, customs clearance, marketing and sales, physical distribution, invoicing, and cash collection services for ethical pharmaceuticals, consumer health, and over-the-counter health products, as well as medical devices. The Consumer Goods segment offers a range of services, including product feasibility studies, registration, importation, customs clearance, marketing and merchandising, sales, warehousing, physical distribution, invoicing, cash collection, and after-sales services for fast moving consumer goods, food services, luxury goods, and fashion and lifestyle products, as well as hair and skin cosmetics. The Performance Materials segment sources, markets, and distributes a range of specialty chemicals and ingredients for the pharmaceutical, personal care, food and beverage, and industrial applications, as well as provides market expansion services for performance materials. The Technology segment offers market expansion services comprising a range of capital investment goods and analytical instruments in the areas of infrastructure, industrial materials and supplies, precision and textile machinery, semiconductors, photovoltaic and electronics, agriculture, and hospitality, as well as specialized industrial applications. The company was founded in 1865 and is based in Zurich, Switzerland.

About Research Solutions

Research Solutions, Inc., through its subsidiaries, provides research cloud-based software-as-a-service software platform and related services to corporate, academic, government and individual researchers in the United States, Europe, and internationally. It provides Discover platform that facilitates search discovery across virtually all scientific, technical, and medical (STM) articles available, including free basic search solutions and advanced search tools, which include the Resolute.ai and scite.ai products, a tools that allows for searching and identifying relevant research and find insights in other datasets adjacent to STM content, such as clinical trial, patent, life science and medtech regulatory information, competitor and technology landscape insights in addition to searching the customer’s internal datasets. The company also offers Article Galaxy, a solution that allows research organizations to load their entitlements, consisting of subscriptions, discount or token packages, and their existing library of articles. In addition, it provides Manage platform, a references solution that allows users to access the article inside the platform including setting up personal folders or team folders and allows researchers to markup and take notes on the articles in a supported browser on a desktop or tablet. Further, the company’s platform facilitates the sale of published STM content sold as individual articles. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Henderson, Nevada.