Financial Comparison: ARI Network Services (NASDAQ:ARIS) vs. Covisint (COVS)

Covisint (NASDAQ: COVS) and ARI Network Services (NASDAQ:ARIS) are both small-cap companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Institutional and Insider Ownership

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65.5% of Covisint shares are held by institutional investors. Comparatively, 36.1% of ARI Network Services shares are held by institutional investors. 3.9% of Covisint shares are held by insiders. Comparatively, 8.7% of ARI Network Services shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Covisint has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, ARI Network Services has a beta of -1.88, meaning that its stock price is 288% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Covisint and ARI Network Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covisint 0 0 0 0 N/A
ARI Network Services 1 1 0 0 1.50

Profitability

This table compares Covisint and ARI Network Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covisint 8.37% 10.72% 7.55%
ARI Network Services 11.55% 18.27% 9.56%

Earnings and Valuation

This table compares Covisint and ARI Network Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Covisint N/A N/A N/A N/A N/A
ARI Network Services N/A N/A N/A N/A N/A

Summary

ARI Network Services beats Covisint on 4 of the 6 factors compared between the two stocks.

About Covisint

Covisint Corporation provides an open, enterprise class cloud platform (Platform) enabling organizations to build solutions that identify, authenticate and connect users, devices, applications and information. The Company’s Auto Supply Portal is involved in the development and integration of three cloud-based technologies, such as identity management, data integration and exchange services, and portal services. The Company’s Platform is delivered through the cloud as a Platform as a Service (PaaS). The Company’s Platform supports production-critical applications, and offers security, scalability and reliability. The Platform’s various capabilities include Identity services, Messaging and orchestration services and Internet of Things (IoT) Services. Its customers include large, across the globe distributed organizations and mid-sized organizations with external business relationships, as well as the participants in their business relationships.

About ARI Network Services

ARI Network Services, Inc. (ARI) provides Website, software and data solutions. The Company’s solutions include Lead Generation and eCommerce Websites, eCatalogs, Business Management Software, Digital Marketing Services. It offers a menu of Website add-ons, including a mobile inventory management application, third-party inventory integrations and business management integrations. Its eCatalog solutions offer access to its library of electronic product content through a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) solutions. Its Business Management Software solutions are offered in the automotive tire and wheel aftermarket (ATW) aftermarket under the TCS Technologies, an ARI Company brand name. ARI’s Digital Marketing Services include search engine optimization, e-mail marketing, search engine marketing (PPC), online reputation management and online directory management. The Company’s other solutions include software, professional services and hosting services.

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