Contrasting Qiwi (QIWI) & InnerWorkings (INWK)

Qiwi (NASDAQ:QIWI) and InnerWorkings (NASDAQ:INWK) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Qiwi and InnerWorkings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qiwi 1 0 1 0 2.00
InnerWorkings 0 2 1 0 2.33

Qiwi presently has a consensus price target of $18.00, suggesting a potential upside of 26.05%. InnerWorkings has a consensus price target of $11.50, suggesting a potential upside of 156.12%. Given InnerWorkings’ stronger consensus rating and higher possible upside, analysts clearly believe InnerWorkings is more favorable than Qiwi.

Earnings & Valuation

This table compares Qiwi and InnerWorkings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qiwi $363.00 million 1.77 $53.24 million $1.04 13.73
InnerWorkings $1.14 billion 0.20 $16.43 million $0.41 10.95

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

Risk & Volatility

Qiwi has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500. Comparatively, InnerWorkings has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Insider and Institutional Ownership

29.7% of Qiwi shares are owned by institutional investors. Comparatively, 80.5% of InnerWorkings shares are owned by institutional investors. 6.4% of InnerWorkings shares are owned by company 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.

Profitability

This table compares Qiwi and InnerWorkings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qiwi 11.52% 14.40% 6.75%
InnerWorkings -4.03% 1.83% 0.73%

Summary

Qiwi beats InnerWorkings on 8 of the 13 factors compared between the two stocks.

About Qiwi

Qiwi plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russian Federation, Kazakhstan, Moldova, Belarus, Romania, the United Arab Emirates, and internationally. The company offers payment services across online, mobile, and physical channels through a network of approximately 109,000 kiosks and 43,000 terminals that run its proprietary software. It also provides Qiwi Wallet, which is an online and mobile payment processing, and money transfer system that allows customers to pay for the products and services of merchants, as well as perform peer-to-peer money transfers through a virtual wallet; and Visa-branded prepaid cards. In addition, the company offers payment-by installments card systems under the SOVEST brand name; and value added services. Qiwi plc was incorporated in 2007 and is based in Nicosia, Cyprus.

About InnerWorkings

InnerWorkings, Inc. provides marketing execution solutions in North America and internationally. The company's software applications and databases create an integrated solution that stores, analyzes, and tracks the production capabilities of its supplier network, as well as detailed pricing data. It offers outsourced print management solutions that encompass the design, sourcing, and delivery of printed marketing materials, including direct mail, in-store signage, and marketing collateral; and outsourced solutions for the design, sourcing, and delivery of branded merchandise and product packaging. The company also assists clients with the management of events, promotions spending, and related procurement needs; and designs, sources, and installs point of sale displays, permanent retail fixtures, and overall store design, as well as offers on-site outsourced creative studio, digital marketing, and on-demand creative services. In addition, it provides fulfillment and logistics services, such as kitting and assembly, inventory management, and pre-sorting postage. Further, the company offers creative services comprising copywriting, graphics and Website design, identity work and marketing collateral development, and image and print-ready page processing and proofing capability services. It serves corporate clients in a range of industries, such as retail, financial services, hospitality, consumer packaged goods, non-profits, healthcare, pharmaceuticals, food and beverage, broadcasting and cable, and transportation. The company was founded in 2001 and is headquartered in Chicago, Illinois.

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