Critical Analysis: Top KingWin (NASDAQ:TCJH) vs. Steel Connect (NASDAQ:STCN)

Steel Connect (NASDAQ:STCN) and Top KingWin (NASDAQ:TCJH) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Volatility & Risk

Steel Connect has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Top KingWin has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Steel Connect and Top KingWin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Steel Connect	0	0	0	0	N/A
Top KingWin	0	0	0	0	N/A

Institutional and Insider Ownership

47.3% of Steel Connect shares are owned by institutional investors. Comparatively, 53.4% of Top KingWin shares are owned by institutional investors. 1.8% of Steel Connect shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Steel Connect and Top KingWin’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Steel Connect	$189.09 million	0.40	$15.61 million	$3.13	3.88
Top KingWin	$5.45 million	1.22	-$2.55 million	N/A	N/A

Steel Connect has higher revenue and earnings than Top KingWin.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Steel Connect	53.00%	19.76%	4.21%
Top KingWin	N/A	N/A	N/A

Summary

Steel Connect beats Top KingWin on 6 of the 9 factors compared between the two stocks.

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.

About Top KingWin

Top KingWin Ltd provides corporate business training, corporate consulting, and advisory and transaction services in the People's Republic of China. It serves entrepreneurs and executives in small and medium enterprises. The company was founded in 2018 and is headquartered in Guangzhou, China. Top KingWin Ltd operates as a subsidiary of Xu Ruilin Capital CO., Ltd.