Head to Head Survey: Steel Connect (NASDAQ:STCN) versus Capita (OTCMKTS:CTAGY)

Earnings & Valuation

This table compares Capita and Steel Connect”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capita	$3.50 billion	0.10	-$221.54 million	N/A	N/A
Steel Connect	$183.26 million	0.42	$87.98 million	$2.99	4.07

Steel Connect has lower revenue, but higher earnings than Capita.

Institutional & Insider Ownership

47.3% of Steel Connect shares are held by institutional investors. 8.7% of Steel Connect shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Capita and Steel Connect’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capita	N/A	N/A	N/A
Steel Connect	50.53%	14.59%	3.67%

Risk and Volatility

Capita has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Steel Connect has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Summary

Steel Connect beats Capita on 7 of the 9 factors compared between the two stocks.

About Capita

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.

About Steel Connect

Steel Connect, Inc., together with its subsidiaries, provides supply chain services in the United States, Mainland China, Netherlands, and internationally. It offers product configuration and packaging, kitting, and assembly of components and parts into finished goods; and value-added processes, such as product testing, radio frequency identification tagging, product or service activation, language settings, personalization and engraving, multi-channel packaging, and packaging design services. The company provides fulfillment services comprising order management, pick, pack and ship, retail compliance, and demand planning services; and reverse logistics services that simplifies the returns process for retailers and manufacturers, as well as operates a cloud-based e-commerce platform. In addition, it offers warehousing and inventory management services; and software licenses, maintenance, and support services. Further, the company offers its supply chain services to customers in the consumer electronics, communications, computing, medical devices, software, and retail markets. The company was formerly known as ModusLink Global Solutions, Inc. and changed its name to Steel Connect, Inc. in February 2018. Steel Connect, Inc. was incorporated in 1986 and is headquartered in New York, New York.