The Western Union (OTCMKTS: RIHT) and RightsCorp (OTCMKTS:RIHT) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

This table compares The Western Union and RightsCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Western Union -8.05% -560.31% 9.12%
RightsCorp N/A N/A N/A

Earnings and Valuation

This table compares The Western Union and RightsCorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Western Union $5.52 billion 1.52 -$557.10 million $1.80 10.41
RightsCorp $780,000.00 2.08 -$1.35 million N/A N/A

RightsCorp has lower revenue, but higher earnings than The Western Union.

Analyst Recommendations

This is a breakdown of current recommendations for The Western Union and RightsCorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Western Union 4 6 0 0 1.60
RightsCorp 0 0 0 0 N/A

The Western Union currently has a consensus price target of $18.25, suggesting a potential downside of 2.56%. Given The Western Union’s higher probable upside, analysts plainly believe The Western Union is more favorable than RightsCorp.

Volatility and Risk

The Western Union has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, RightsCorp has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Dividends

The Western Union pays an annual dividend of $0.76 per share and has a dividend yield of 4.1%. RightsCorp does not pay a dividend. The Western Union pays out 42.2% of its earnings in the form of a dividend. The Western Union has increased its dividend for 3 consecutive years.

Summary

The Western Union beats RightsCorp on 6 of the 11 factors compared between the two stocks.

About The Western Union

The Western Union Company provides money movement and payment services worldwide. The company operates in two segments, Consumer-to-Consumer and Business Solutions. The Consumer-to-Consumer segment facilitates money transfers between two consumers, primarily through a network of third-party agents. This segment offers international cross-border transfers and intra-country transfers, as well as money transfer transactions through Websites and mobile devices. The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium size enterprises, other organizations, and individuals. The company also facilitates bill payments from consumers to businesses and other organizations, as well as offers money order and other services. It serves primarily through a network of agents. The Western Union Company was incorporated in 2006 and is headquartered in Englewood, Colorado.

About RightsCorp

Rightscorp, Inc. operates as a technology company that has a patent-pending proprietary method for collecting payments from illegal downloaders of copyrighted content through notifications sent to their Internet service providers (ISP's). The company's technology system monitors peer-to-peer file sharing networks and sends through email to ISP's notifications of copyright infringement by the ISPs' customers with date, time, copyright title, and other specific technology identifiers worldwide. It primarily serves copyright holders. The company was founded in 2010 and is headquartered in Santa Monica, California.

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