Comparing Castlight Health (CSLT) and Renren (RENN)

Castlight Health (NYSE:CSLT) and Renren (NYSE:RENN) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

49.8% of Castlight Health shares are held by institutional investors. Comparatively, 3.4% of Renren shares are held by institutional investors. 22.6% of Castlight Health shares are held by insiders. Comparatively, 42.4% of Renren shares are held by 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Castlight Health and Renren, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Castlight Health 0 1 4 0 2.80
Renren 0 0 0 0 N/A

Castlight Health presently has a consensus target price of $5.70, suggesting a potential upside of 131.71%. Given Castlight Health’s higher probable upside, research analysts plainly believe Castlight Health is more favorable than Renren.

Earnings and Valuation

This table compares Castlight Health and Renren’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Castlight Health $131.43 million 2.58 -$55.57 million ($0.26) -9.46
Renren $202.10 million 0.61 -$110.42 million ($1.61) -1.11

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

Risk and Volatility

Castlight Health has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Renren has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Profitability

This table compares Castlight Health and Renren’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Castlight Health -38.02% -22.89% -16.51%
Renren 10.94% -19.14% -11.34%

Summary

Castlight Health beats Renren on 7 of the 13 factors compared between the two stocks.

About Castlight Health

Castlight Health, Inc. provides a software-as-a-service platform used for health benefits navigation for employees in the United States. Its platform matches employees to the resources their employers make available to them; managing a condition; and assists them to manage their benefits. The company also offers communication and testing, implementation, and user customer support services. It serves customers in a range of industries, including education, manufacturing, retail, technology, and government. The company was formerly known as Ventana Health Services and changed its name to Castlight Health, Inc. in April 2010. Castlight Health, Inc. was founded in 2008 and is headquartered in San Francisco, California.

About Renren

Renren Inc. operates a social networking Internet platform in the People's Republic of China. It operates through two segments, Renren and Auto Group. The company operates Renren.com and Renren Mobile App that enable users to communicate and stay connected with friends, classmates, family members, and co-workers; and woxiu.com, a PC-based social video platform for users to stream their performances live to viewers. The company also sells used automobiles and related products; arranges financing options for customers through its financial services partners; provides credit financing for used automobile dealerships; and sells new cars, as well as provides value-added services, such as warranties, insurance, and after-sale products and services. It offers vehicles at its in-store showrooms; and through Kaixin Auto app, as well as through other online vertical channels, such as Autohome and 58.com. In addition, the company develops Chime, a software as a solution platform that offers lead generation and customer relationship management solutions for real estate professionals; and provides customizable lead capture landing pages that offer multiple home value estimates in the United States. Further, it provides online and mobile services for the trucking industry in the United States. The company was formerly known as Oak Pacific Interactive and changed its name to Renren Inc. in December 2010. Renren Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

Receive News & Ratings for Castlight Health Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Castlight Health and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply