Liquidity Services (NASDAQ:LQDT) & Treasure Global (NASDAQ:TGL) Critical Contrast

Treasure Global (NASDAQ:TGL) and Liquidity Services (NASDAQ:LQDT) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Earnings and Valuation

This table compares Treasure Global and Liquidity Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treasure Global	$8.81 million	0.27	-$6.59 million	N/A	N/A
Liquidity Services	$363.32 million	2.79	$20.98 million	$0.63	52.40

Liquidity Services has higher revenue and earnings than Treasure Global.

Analyst Ratings

This is a breakdown of current ratings for Treasure Global and Liquidity Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treasure Global	0	0	0	0	0.00
Liquidity Services	0	0	2	0	3.00

Liquidity Services has a consensus target price of $32.00, indicating a potential downside of 3.06%. Given Liquidity Services’ stronger consensus rating and higher probable upside, analysts clearly believe Liquidity Services is more favorable than Treasure Global.

Profitability

This table compares Treasure Global and Liquidity Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treasure Global	-61.36%	-131.73%	-105.59%
Liquidity Services	5.50%	18.99%	10.35%

Volatility and Risk

Treasure Global has a beta of 2.86, meaning that its stock price is 186% more volatile than the S&P 500. Comparatively, Liquidity Services has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Insider & Institutional Ownership

71.2% of Liquidity Services shares are held by institutional investors. 0.0% of Treasure Global shares are held by insiders. Comparatively, 29.8% of Liquidity Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Liquidity Services beats Treasure Global on 11 of the 12 factors compared between the two stocks.

About Treasure Global

Treasure Global Inc. offers e-commerce activities through its platform. Its platform provides consumers and merchants instant rebates and affiliate cashback programs, while providing a seamless e-payment solution with rebates in both e-commerce and physical retailers/merchant settings. The company offers ZCITY App, a payment gateway platform. Treasure Global Inc. was incorporated in 2020 and is based in New York, New York.

About Liquidity Services

Liquidity Services, Inc. provides e-commerce marketplaces, self-directed auction listing tools, and value-added services in the United States and internationally. The company operates through four segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Its marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and retail capital assets; GovDeals marketplace, which provides self-directed service solutions in which sellers list their own assets that enables local and state government entities, and commercial businesses located in the United States and Canada to sell surplus and salvage assets; and AllSurplus, a centralized marketplace that connects global buyer base with assets from across the network of marketplaces in a single destination. The company also offers a suite of services, including surplus management, asset valuation, asset sales, marketing, returns management, asset recovery, and ecommerce services. In addition, it operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors. The company offers products from industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment, and specialty equipment. The company was incorporated in 1999 and is headquartered in Bethesda, Maryland.