Paltalk (NASDAQ:PALT) & Relx (NYSE:RELX) Critical Comparison

Relx (NYSE:RELX) and Paltalk (NASDAQ:PALT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Volatility and Risk

Relx has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Paltalk has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Relx and Paltalk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relx	N/A	N/A	N/A
Paltalk	-18.39%	-9.58%	-8.10%

Insider & Institutional Ownership

15.0% of Relx shares are owned by institutional investors. Comparatively, 3.9% of Paltalk shares are owned by institutional investors. 0.0% of Relx shares are owned by insiders. Comparatively, 17.8% of Paltalk shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Relx and Paltalk, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relx	0	1	2	0	2.67
Paltalk	0	1	0	0	2.00

Paltalk has a consensus target price of $4.50, indicating a potential upside of 0.00%. Given Paltalk’s higher possible upside, analysts plainly believe Paltalk is more favorable than Relx.

Earnings and Valuation

This table compares Relx and Paltalk’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Relx	$9.91 billion	8.67	$2.22 billion	N/A	N/A
Paltalk	$10.28 million	4.04	-$1.07 million	($0.09)	-50.00

Relx has higher revenue and earnings than Paltalk.

Summary

Relx beats Paltalk on 10 of the 12 factors compared between the two stocks.

About Relx

RELX PLC, together with its subsidiaries, provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. It operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions. The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk. The Scientific, Technical & Medical segment provides information and data sets that help researchers and healthcare professionals to advance science and health outcomes. The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity. The Exhibitions segment is involved in the business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. RELX PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.

About Paltalk

Paltalk, Inc., together with its subsidiaries, develops communications software and multimedia social applications worldwide. It offers consumer applications, which include Paltalk, Camfrog, and Tinychat for live video chat; and owns and operates Vumber, a telecommunications services provider that enables users to have multiple phone numbers in any area code through which calls can be forwarded to a user’s existing cell phone or land line telephone number. The company provides ManyCam, a live streaming software and virtual camera that allows users to deliver professional live videos on streaming platforms, video conferencing applications, and distance learning tools; and product payment options, where users can pay by credit card, PayPal, western union, check, local e-wallet providers, or complete an in-app purchase through the Apple App Store or Google Play Store for Android users. The company was formerly known as PeerStream, Inc. and changed its name to Paltalk, Inc. in May 2020. Paltalk, Inc. was incorporated in 2005 and is based in Jericho, New York.