Financial Analysis: Lightspeed Commerce (NYSE:LSPD) versus ReposiTrak (NYSE:TRAK)

Lightspeed Commerce (NYSE:LSPD) and ReposiTrak (NYSE:TRAK) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Lightspeed Commerce has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, ReposiTrak has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

68.7% of Lightspeed Commerce shares are held by institutional investors. Comparatively, 27.4% of ReposiTrak shares are held by institutional investors. 37.0% of ReposiTrak shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Lightspeed Commerce and ReposiTrak”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightspeed Commerce	$1.23 billion	1.06	-$144.41 million	($0.49)	-20.60
ReposiTrak	$23.29 million	5.74	$7.57 million	$0.39	18.85

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

Profitability

This table compares Lightspeed Commerce and ReposiTrak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lightspeed Commerce	-5.51%	1.30%	1.15%
ReposiTrak	32.51%	14.94%	13.16%

Analyst Ratings

This is a summary of current recommendations for Lightspeed Commerce and ReposiTrak, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightspeed Commerce	3	9	4	0	2.06
ReposiTrak	1	0	0	0	1.00

Lightspeed Commerce presently has a consensus target price of $11.27, suggesting a potential upside of 11.63%. Given Lightspeed Commerce’s stronger consensus rating and higher possible upside, analysts plainly believe Lightspeed Commerce is more favorable than ReposiTrak.

Summary

ReposiTrak beats Lightspeed Commerce on 8 of the 14 factors compared between the two stocks.

About Lightspeed Commerce

Lightspeed Commerce is a Montreal-based technology company that provides cloud-based commerce software to retail, restaurant and golf businesses. Founded in 2005 by Dax Dasilva, the company initially focused on point-of-sale tools for retailers and has since broadened its platform and customer base. Its products combine point-of-sale systems with tools for payments, inventory and order management, e-commerce, customer engagement and business analytics. Lightspeed also offers software designed for restaurant operations and golf course management.

About ReposiTrak

ReposiTrak, Inc. provides cloud-based software for managing supply-chain processes, compliance and food traceability. Its platform serves businesses across the food industry, including retailers, wholesalers, distributors, manufacturers and suppliers. The company’s offerings include tools for supplier management, food safety and regulatory compliance, supply-chain visibility, and product traceability. Its network helps trading partners share information and track food products through the supply chain.