Critical Review: Research Solutions (NASDAQ:RSSS) and PPJ Healthcare Enterprises (OTCMKTS:PPJE)

Research Solutions (NASDAQ:RSSS) and PPJ Healthcare Enterprises (OTCMKTS:PPJE) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Research Solutions and PPJ Healthcare Enterprises, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Research Solutions	0	0	2	0	3.00
PPJ Healthcare Enterprises	0	0	0	0	0.00

Research Solutions presently has a consensus price target of $5.50, indicating a potential upside of 97.13%. Given Research Solutions’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Research Solutions is more favorable than PPJ Healthcare Enterprises.

Insider and Institutional Ownership

33.6% of Research Solutions shares are owned by institutional investors. 12.9% of Research Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Research Solutions has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, PPJ Healthcare Enterprises has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Earnings & Valuation

This table compares Research Solutions and PPJ Healthcare Enterprises”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Research Solutions	$44.62 million	2.03	-$3.79 million	($0.14)	-19.93
PPJ Healthcare Enterprises	$710,000.00	0.78	$80,000.00	N/A	N/A

PPJ Healthcare Enterprises has lower revenue, but higher earnings than Research Solutions.

Profitability

This table compares Research Solutions and PPJ Healthcare Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Research Solutions	-8.49%	-4.71%	-1.51%
PPJ Healthcare Enterprises	-8.43%	N/A	N/A

Summary

Research Solutions beats PPJ Healthcare Enterprises on 7 of the 12 factors compared between the two stocks.

About Research Solutions

Research Solutions, Inc., through its subsidiaries, provides research cloud-based software-as-a-service software platform and related services to corporate, academic, government and individual researchers in the United States, Europe, and internationally. It provides Discover platform that facilitates search discovery across virtually all scientific, technical, and medical (STM) articles available, including free basic search solutions and advanced search tools, which include the Resolute.ai and scite.ai products, a tools that allows for searching and identifying relevant research and find insights in other datasets adjacent to STM content, such as clinical trial, patent, life science and medtech regulatory information, competitor and technology landscape insights in addition to searching the customer’s internal datasets. The company also offers Article Galaxy, a solution that allows research organizations to load their entitlements, consisting of subscriptions, discount or token packages, and their existing library of articles. In addition, it provides Manage platform, a references solution that allows users to access the article inside the platform including setting up personal folders or team folders and allows researchers to markup and take notes on the articles in a supported browser on a desktop or tablet. Further, the company’s platform facilitates the sale of published STM content sold as individual articles. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Henderson, Nevada.

About PPJ Healthcare Enterprises

PPJ Healthcare Enterprises, Inc., through its subsidiaries, provides automated healthcare reimbursement cycle, online health information digital-systems, and practice information management digital-system software to health care providers and general businesses worldwide. The company offers the Automated Biller, a medical billing system that allows physicians to bill their medical insurance claims at the point of service without data entry, coding, or billing personnel. It also provides billing, specialty medical billing, collection, and workers comp lien collection services for health care providers in the areas of pain management, anesthesia and surgery centers practices, and various specialties of medicine. The company was formerly known as PPJ Enterprise and changed its name to PPJ Healthcare Enterprises, Inc. in October 2014. PPJ Healthcare Enterprises, Inc. was founded in 2000 and is headquartered in Reno, Nevada.