Reviewing Steel Connect (STCN) and Qiwi (QIWI)

Steel Connect (NASDAQ:STCN) and Qiwi (NASDAQ:QIWI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Earnings and Valuation

This table compares Steel Connect and Qiwi’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Steel Connect $645.26 million 0.19 $36.71 million N/A N/A
Qiwi $363.00 million 2.43 $53.24 million $1.04 13.90

Qiwi has lower revenue, but higher earnings than Steel Connect.

Institutional & Insider Ownership

52.6% of Steel Connect shares are held by institutional investors. Comparatively, 29.3% of Qiwi shares are held by institutional investors. 8.7% of Steel Connect shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Steel Connect has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Qiwi has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Profitability

This table compares Steel Connect and Qiwi’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Steel Connect -4.55% -16.71% -2.15%
Qiwi 11.52% 14.40% 6.75%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Steel Connect and Qiwi, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Steel Connect 0 0 0 0 N/A
Qiwi 1 1 1 0 2.00

Qiwi has a consensus price target of $18.33, suggesting a potential upside of 26.79%. Given Qiwi’s higher possible upside, analysts plainly believe Qiwi is more favorable than Steel Connect.

Summary

Qiwi beats Steel Connect on 8 of the 11 factors compared between the two stocks.

About Steel Connect

Steel Connect, Inc., through its subsidiaries, provides supply chain and logistics services to the consumer electronics, communications, computing, medical devices, software, storage, retail, and other industries. It operates through five segments: Americas, Asia, Europe, Direct Marketing, and e-Business. The company offers product configuration and packaging, kitting, and assembly of components and parts into finished goods; and value-added processes, such as product testing, radio frequency identification (RFID) tagging, product or service activation, language settings, personalization and engraving, multi-channel packaging, and packaging design services. It also provides fulfillment services, including order management, pick, pack and ship, retail compliance, and demand planning services; and content protection and activation, and IP security services, as well as optimizes component and finished goods inventory levels. In addition, it offers operates a cloud-based e-commerce platform, which online buying experience so that products can be purchased, serviced, and delivered worldwide; and provides reverse logistics services that simplifies the returns process for retailers and manufacturers to improve service parts management and the value of returned assets. Further, the company offers EZ Connect service, which provides essential fulfillment capabilities for emerging growth companies without the expensive surprises associated with third-party fulfillment services; and direct marketing services comprising end-to-end services for paper-based direct marketing and omnichannel marketing campaign services. The company was formerly known as ModusLink Global Solutions, Inc. and changed its name to Steel Connect, Inc. in February 2018. Steel Connect, Inc. was incorporated in 1986 and is headquartered in Waltham, Massachusetts.

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.

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