System1 (NYSE:SST – Get Free Report) and Star Fashion Culture (NASDAQ:STFS – Get Free Report) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.
Profitability
This table compares System1 and Star Fashion Culture’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| System1 | -22.43% | -92.07% | -15.92% |
| Star Fashion Culture | N/A | N/A | N/A |
Earnings & Valuation
This table compares System1 and Star Fashion Culture”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| System1 | $343.92 million | 0.20 | -$74.67 million | ($9.63) | -0.72 |
| Star Fashion Culture | $122.29 million | 0.02 | $1.54 million | N/A | N/A |
Star Fashion Culture has lower revenue, but higher earnings than System1.
Institutional & Insider Ownership
87.5% of System1 shares are owned by institutional investors. 13.2% of System1 shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for System1 and Star Fashion Culture, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| System1 | 1 | 0 | 1 | 0 | 2.00 |
| Star Fashion Culture | 1 | 0 | 0 | 0 | 1.00 |
System1 presently has a consensus price target of $10.00, suggesting a potential upside of 44.38%. Given System1’s stronger consensus rating and higher probable upside, analysts plainly believe System1 is more favorable than Star Fashion Culture.
Summary
System1 beats Star Fashion Culture on 7 of the 11 factors compared between the two stocks.
About System1
System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.
About Star Fashion Culture
Star Fashion Culture Holdings Limited provides content marketing solutions services in the People’s Republic of China. It offers marketing campaign planning and execution services; offline advertising services; and online precision marketing services. The company was founded in 2015 and is based in Xiamen, the People’s Republic of China. Star Fashion Culture Holdings Limited operates as a subsidiary of Xingji ZhangPingting Limited.
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