Sterling Check (NASDAQ:STER – Get Rating) and Agent Information Software (OTCMKTS:AIFS – Get Rating) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
85.5% of Sterling Check shares are held by institutional investors. Comparatively, 0.8% of Agent Information Software shares are held by institutional investors. 6.8% of Sterling Check shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Sterling Check and Agent Information Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sterling Check | 1.83% | 11.17% | 5.83% |
| Agent Information Software | N/A | N/A | N/A |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sterling Check | 0 | 2 | 4 | 0 | 2.67 |
| Agent Information Software | 0 | 0 | 0 | 0 | N/A |
Sterling Check currently has a consensus price target of $16.86, indicating a potential upside of 29.87%. Given Sterling Check’s higher probable upside, analysts clearly believe Sterling Check is more favorable than Agent Information Software.
Risk and Volatility
Sterling Check has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Agent Information Software has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.
Earnings & Valuation
This table compares Sterling Check and Agent Information Software’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sterling Check | $766.78 million | 1.66 | $19.41 million | $0.14 | 92.71 |
| Agent Information Software | N/A | N/A | N/A | N/A | N/A |
Sterling Check has higher revenue and earnings than Agent Information Software.
Summary
Sterling Check beats Agent Information Software on 8 of the 9 factors compared between the two stocks.
About Sterling Check
Sterling Check Corp. provides technology-enabled background and identity verification services in the United States, Canada, Europe, the Middle East and Africa, and the Asia Pacific. The company offers identity verification services, such as telecom and device verification, identification document verification, facial recognition with biometric matching, social security number verification, and live video chat identification proofing; fingerprinting; background checks, including criminal record checks, sex offender registries, civil court records, motor vehicle and driving license records, executive investigations, credit reports, social media searches, and contingent workforce solutions; liens, judgments, and bankruptcies; and sanctions, risk, and compliance checks. It also provides credential verification services, which include employment verification, education verification, credential verification, professional reference checks, and department of transportation; drug and health screening; onboarding solutions, including Sterling I-9 that integrates a suite of screening and onboarding services and onboarding forms; and workforce, medical license, and motor vehicle records monitoring solutions. The company's services are delivered through its cloud-based technology platform that empowers organizations with real-time and data-driven insights to conduct and manage their employment screening programs. It serves a client base in a range of industries, such as healthcare, gig economy, financial and business services, industrials, retail, contingent, technology, media and entertainment, transportation and logistics, hospitality, education, and government. The company was formerly known as Sterling Ultimate Parent Corp. and changed its name to Sterling Check Corp. in August 2021. Sterling Check Corp. was founded in 1975 and is headquartered in New York, New York.
About Agent Information Software
Agent Information Software, Inc. engages in the provision of software products and services used to create, manage, publish and access information content via the Internet. The company was founded in 1950 and is headquartered in Rancho Cucamonga, CA.
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