CTT Correios de Portugal (OTCMKTS:CTTPY) vs. FlexShopper (NASDAQ:FPAY) Financial Review

FlexShopper (NASDAQ:FPAY) and CTT Correios de Portugal (OTCMKTS:CTTPY) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation and Earnings

This table compares FlexShopper and CTT Correios de Portugal”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FlexShopper	$139.80 million	0.00	-$180,000.00	($0.23)	N/A
CTT Correios de Portugal	$1.46 billion	0.73	$57.36 million	$0.84	18.93

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

Profitability

This table compares FlexShopper and CTT Correios de Portugal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FlexShopper	N/A	N/A	N/A
CTT Correios de Portugal	3.96%	16.98%	0.89%

Institutional & Insider Ownership

19.4% of FlexShopper shares are held by institutional investors. 30.2% of FlexShopper shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for FlexShopper and CTT Correios de Portugal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FlexShopper	1	0	1	0	2.00
CTT Correios de Portugal	0	0	0	0	0.00

FlexShopper currently has a consensus price target of $0.50, suggesting a potential upside of 0.00%. Given FlexShopper’s stronger consensus rating and higher possible upside, equities research analysts clearly believe FlexShopper is more favorable than CTT Correios de Portugal.

Volatility and Risk

FlexShopper has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, CTT Correios de Portugal has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500.

Summary

CTT Correios de Portugal beats FlexShopper on 7 of the 13 factors compared between the two stocks.

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.

About CTT Correios de Portugal

CTT – Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide. It operates through Mail, Express & Parcels, Financial Services & Retail, and Bank segments. The company offers courier and urgent mail transport services; postal financial services; and banking services. It also engages in the business of payments related to collection of invoices and fines. In addition, the company enables the payment of various services and utilities through a network of approximately 5,000 agents covering business outlets as stationery stores, tobacco shops, kiosks, and supermarkets. It operates a retail network of 566 post offices; 1,808 postal agencies; 223 postal delivery offices; 4,576 postal delivery routes; and a fleet of 3,925 vehicles. The company was formerly known as Correio Publico. CTT – Correios De Portugal, S.A. was founded in 1520 and is headquartered in Lisbon, Portugal.