First Advantage (NYSE:FA – Get Rating) and Rightscorp (OTCMKTS:RIHT – Get Rating) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
Institutional & Insider Ownership
94.6% of First Advantage shares are owned by institutional investors. Comparatively, 0.1% of Rightscorp shares are owned by institutional investors. 4.1% of First Advantage shares are owned by 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
First Advantage has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Rightscorp has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| First Advantage | 0 | 6 | 0 | 0 | 2.00 |
| Rightscorp | 0 | 0 | 0 | 0 | N/A |
First Advantage currently has a consensus target price of $14.40, indicating a potential upside of 5.34%. Given First Advantage’s higher possible upside, equities research analysts clearly believe First Advantage is more favorable than Rightscorp.
Profitability
This table compares First Advantage and Rightscorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| First Advantage | 7.98% | 13.21% | 7.95% |
| Rightscorp | N/A | N/A | N/A |
Earnings & Valuation
This table compares First Advantage and Rightscorp’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| First Advantage | $810.02 million | 2.49 | $64.60 million | $0.42 | 32.55 |
| Rightscorp | N/A | N/A | N/A | N/A | N/A |
First Advantage has higher revenue and earnings than Rightscorp.
Summary
First Advantage beats Rightscorp on 8 of the 8 factors compared between the two stocks.
About First Advantage
First Advantage Corporation provides technology solutions for screening, verifications, safety, and compliance related to human capital worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and fleet/vehicle compliance, hiring tax credits and incentives, resident/tenant screening, and investigative research. Its products and solutions are used by personnel in recruiting, human resources, risk, compliance, vendor management, safety, and/or security in global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2003 and is headquartered in Atlanta, Georgia.
About Rightscorp
Rightscorp, Inc. engages in the provision of data analytics and litigation services to support artists and owners of copyrighted intellectual property. Its technology system monitors the global peer-to-peer file sharing networks to seek out and find illegally downloaded digital media. The company was founded on April 9, 2010 and is headquartered in Santa Monica, CA.
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