Reviewing Research Solutions (NASDAQ:RSSS) & Emerald (NYSE:EEX)

Research Solutions (NASDAQ:RSSSGet Free Report) and Emerald (NYSE:EEXGet Free Report) are both small-cap industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Institutional & Insider Ownership

33.6% of Research Solutions shares are held by institutional investors. Comparatively, 14.9% of Emerald shares are held by institutional investors. 26.5% of Research Solutions shares are held by insiders. Comparatively, 11.5% of Emerald shares are held 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.

Volatility & Risk

Research Solutions has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Emerald has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Valuation and Earnings

This table compares Research Solutions and Emerald’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Research Solutions $37.70 million 2.35 $570,000.00 ($0.03) -91.67
Emerald $382.80 million 3.12 -$8.20 million ($0.75) -7.81

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

Profitability

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

Net Margins Return on Equity Return on Assets
Research Solutions -1.39% -5.58% -1.88%
Emerald -1.09% -59.12% -0.40%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Research Solutions and Emerald, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Research Solutions 0 0 3 0 3.00
Emerald 0 0 1 0 3.00

Research Solutions currently has a consensus price target of $5.12, suggesting a potential upside of 86.06%. Emerald has a consensus price target of $8.20, suggesting a potential upside of 39.93%. Given Research Solutions’ higher possible upside, analysts plainly believe Research Solutions is more favorable than Emerald.

Summary

Research Solutions beats Emerald on 7 of the 13 factors compared between the two stocks.

About Research Solutions

(Get Free Report)

Research Solutions, Inc., through its subsidiaries, provides cloud-based software-as-a-service research platform. The company is also involved in the transactional sale of published scientific, technical, and medical (STM) content managed, sourced, and delivered through the Transactions platform. Its solutions enable life science and other research intensive organizations to accelerate their research and development activities with access and management STM articles used throughout the intellectual property development lifecycle. 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.

About Emerald

(Get Free Report)

Emerald Holding, Inc. operates business-to-business (B2B) trade shows in the United States. The company provides B2B trade show franchises; and B2B print publications and digital media products, which provide industry specific business news and information across various sectors. It also offers B2B e-commerce and digital merchandising solutions to manufacturers and retailers through Elastic Suite and Bulletin platforms. The company serves retail, design, technology, equipment, and safety and security. Emerald Holding, Inc. was incorporated in 2013 and is headquartered in New York, New York.

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