Analyzing RDE (NASDAQ:GIFT) and LightInTheBox (NYSE:LITB)

LightInTheBox (NYSE:LITB) and RDE (NASDAQ:GIFT) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for LightInTheBox and RDE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightInTheBox	0	0	0	0	0.00
RDE	0	0	1	0	3.00

RDE has a consensus target price of $4.00, indicating a potential upside of 123.46%. Given RDE’s stronger consensus rating and higher probable upside, analysts clearly believe RDE is more favorable than LightInTheBox.

Institutional & Insider Ownership

56.8% of LightInTheBox shares are held by institutional investors. 62.2% of LightInTheBox shares are held by company insiders. Comparatively, 20.5% of RDE shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares LightInTheBox and RDE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LightInTheBox	-2.16%	N/A	-7.96%
RDE	N/A	-62.87%	-38.24%

Valuation & Earnings

This table compares LightInTheBox and RDE”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightInTheBox	$231.14 million	0.10	-$9.59 million	$0.10	12.57
RDE	$89.69 million	0.59	N/A	N/A	N/A

RDE has lower revenue, but higher earnings than LightInTheBox.

Risk & Volatility

LightInTheBox has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, RDE has a beta of -1.6, meaning that its stock price is 260% less volatile than the S&P 500.

Summary

LightInTheBox beats RDE on 6 of the 11 factors compared between the two stocks.

About LightInTheBox

LightInTheBox Holding Co., Ltd., together with its subsidiaries, operates as an online retailer that delivers products directly to its consumers worldwide. The company provides apparel products; and other general merchandise products, such as small accessories and gadgets, home garden, toys and hobbies, electronics and communication devices, and other products. It also offers supplier chain management, research and development, customer, marketing, warehouse management, local delivery, and fulfillment services, as well as engages in the product sourcing, marketing, and operation of its websites and mobile applications. The company provides its products through www.lightinthebox.com and www.ezbuy.sg, and other websites and mobile applications. LightInTheBox Holding Co., Ltd. was founded in 2007 and is based in Singapore.

About RDE

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.