Points International (NASDAQ: PCOM) and Borderfree (NASDAQ:BRDR) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Profitability

This table compares Points International and Borderfree’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Points International -0.43% 8.28% 3.47%
Borderfree -18.56% -16.07% -12.01%

Insider and Institutional Ownership

37.4% of Points International shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Points International and Borderfree’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Points International $321.82 million 0.49 -$1.51 million ($0.09) -118.22
Borderfree N/A N/A N/A ($0.18) -77.78

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

Analyst Recommendations

This is a summary of current ratings and price targets for Points International and Borderfree, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Points International 0 0 2 0 3.00
Borderfree 0 0 0 0 N/A

Points International presently has a consensus target price of $13.50, indicating a potential upside of 26.88%. Given Points International’s higher probable upside, equities research analysts plainly believe Points International is more favorable than Borderfree.

Summary

Points International beats Borderfree on 8 of the 8 factors compared between the two stocks.

About Points International

Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com Website. It also offers Points Travel, which is private label travel e-commerce platform designed specifically for the loyalty industry. The Company operates the PointsHound.com Website, a hotel booking engine and loyalty currency aggregator built specifically for frequent travelers.

About Borderfree

Borderfree, Inc. (Borderfree) is engaged in the e-commerce, operating a technology and services platform to enable the United States retailers to transact with international shoppers. The retailers and brands, which the Company refers to as their customers, that integrate the Company’s solution use the Borderfree platform to develop an e-commerce business across Web, mobile and in-store channels. Borderfree manages all aspects of the international shopping experience, including site localization, multi-currency pricing, payment processing, fraud management, landed cost calculation, customs clearance and brokerage, and global logistics services. The Borderfree platform consists of technology, data, know-how and services that span: consumer experience localization; payments, compliance and risk management; global transportation and logistics; post-delivery customer care, and global consumer insights and marketing.

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