Head-To-Head Analysis: RESAAS Services (OTCMKTS:RSASF) & NerdWallet (NASDAQ:NRDS)

RESAAS Services (OTCMKTS:RSASF) and NerdWallet (NASDAQ:NRDS) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for RESAAS Services and NerdWallet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RESAAS Services	0	0	0	0	N/A
NerdWallet	0	2	4	0	2.67

NerdWallet has a consensus price target of $16.50, suggesting a potential upside of 44.23%. Given NerdWallet’s higher possible upside, analysts clearly believe NerdWallet is more favorable than RESAAS Services.

Insider & Institutional Ownership

38.8% of NerdWallet shares are held by institutional investors. 45.9% of NerdWallet 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 RESAAS Services and NerdWallet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RESAAS Services	-359.04%	N/A	-332.58%
NerdWallet	-1.85%	-3.00%	-2.59%

Earnings and Valuation

This table compares RESAAS Services and NerdWallet’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RESAAS Services	$300,000.00	69.97	-$1.67 million	($0.02)	-13.13
NerdWallet	$599.40 million	1.48	-$11.80 million	($0.17)	-67.29

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

Volatility and Risk

RESAAS Services has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Summary

NerdWallet beats RESAAS Services on 8 of the 13 factors compared between the two stocks.

About RESAAS Services

RESAAS Services Inc. engages in the development of web and mobile communications software for the real estate industry. The company offers a suite of tools, which integrate with the platform, including a global referral network, lead generation engine, listing management, client engagement modules, customer relationship management tools, analytics, file sharing, payment system, and advertising engine. Its solutions include RealTimeMLS, a real-time listing solution and communication platform designed for real estate associations and multiple listing services (MLSs); and BrokerOS, an online communication hub that ensures agents open, read, and respond to the emails and messages sent to them by users. The company serves MLSs, franchises, and real estate brokerage and real estate agents in the real estate industry. RESAAS Services Inc. was incorporated in 2009 and is based in Vancouver, Canada.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.