Head to Head Contrast: Perfect (NYSE:PERF) & Riskified (NYSE:RSKD)

Riskified (NYSE:RSKD) and Perfect (NYSE:PERF) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Riskified and Perfect”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riskified	$344.64 million	2.61	-$27.57 million	($0.11)	-55.14
Perfect	$69.15 million	2.84	$4.64 million	$0.06	32.17

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

Profitability

This table compares Riskified and Perfect’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riskified	-4.23%	-3.93%	-2.79%
Perfect	8.13%	3.73%	2.98%

Insider & Institutional Ownership

59.0% of Riskified shares are owned by institutional investors. 17.4% of Riskified shares are owned by company insiders. Comparatively, 44.7% of Perfect shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Riskified has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Perfect has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Riskified and Perfect, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riskified	2	3	2	0	2.00
Perfect	1	2	0	0	1.67

Riskified presently has a consensus target price of $6.50, indicating a potential upside of 7.17%. Given Riskified’s stronger consensus rating and higher possible upside, analysts plainly believe Riskified is more favorable than Perfect.

Summary

Perfect beats Riskified on 8 of the 14 factors compared between the two stocks.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.

About Perfect

Perfect Corp. is a software as a service technology company, which engages in the business of developing makeup virtual try-on solutions. Its solutions include virtual try-ons for makeup, nail art, hairstyles, beard dye and styling, eyewear, jewelry, advanced skin diagnostic technology, foundation shade finder, and interactive artificial reality makeup application tutorial platform. Its brands include Estée Lauder, Clinique, MAC, e.l.e., benefit, Sally Hansen, Belcorp, Decorté, NARS, Aveda, Madisonreed, kate, Sofina iP, Jillstuart, Cosnova, Beekman, Marianna, Ardell, tarte, and Coffret D’or. It operates through the following geographical segments: United States, Japan, France, and Others. The company was founded by Alice H. Chang on February 13, 2015 and is headquartered in New Taipei, Taiwan.