Critical Review: TaskUs (NASDAQ:TASK) & Scienjoy (NASDAQ:SJ)

Scienjoy (NASDAQ:SJ) and TaskUs (NASDAQ:TASK) are both small-cap unclassified companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Scienjoy and TaskUs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scienjoy	0	0	1	0	3.00
TaskUs	1	5	2	0	2.13

Scienjoy presently has a consensus price target of $91.00, indicating a potential upside of 10,240.91%. TaskUs has a consensus price target of $15.38, indicating a potential upside of 23.10%. Given Scienjoy’s stronger consensus rating and higher possible upside, analysts clearly believe Scienjoy is more favorable than TaskUs.

Insider and Institutional Ownership

0.3% of Scienjoy shares are owned by institutional investors. Comparatively, 44.6% of TaskUs shares are owned by institutional investors. 33.5% of Scienjoy shares are owned by company insiders. Comparatively, 29.3% of TaskUs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Scienjoy has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, TaskUs has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500.

Profitability

This table compares Scienjoy and TaskUs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scienjoy	-4.79%	-5.34%	-4.39%
TaskUs	5.44%	16.93%	8.64%

Earnings and Valuation

This table compares Scienjoy and TaskUs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scienjoy	$1.49 billion	0.02	-$4.34 million	($0.08)	-11.00
TaskUs	$924.36 million	1.20	$45.69 million	$0.51	24.49

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

Summary

TaskUs beats Scienjoy on 10 of the 14 factors compared between the two stocks.

About Scienjoy

Scienjoy Holding Corporation provides mobile live streaming platforms in the People's Republic of China. The company focuses on interactive show live streaming from broadcasters to users. Its platforms enable users to view and interact with broadcasters through online chat, virtual items, and playing games. The company operates live streaming platforms under the Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming, and Hongle Live Streaming names. It also offers technical development and advisory services. The company was founded in 2011 and is based in Hangzhou City, the People's Republic of China.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.