Comparing Sterling Check (NASDAQ:STER) and RESAAS Services (OTCMKTS:RSASF)

Sterling Check (NASDAQ:STER) and RESAAS Services (OTCMKTS:RSASF) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

This table compares Sterling Check and RESAAS Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sterling Check	-0.02%	9.47%	4.91%
RESAAS Services	-606.73%	N/A	-904.39%

Earnings & Valuation

This table compares Sterling Check and RESAAS Services’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sterling Check	$719.64 million	2.06	-$120,000.00	N/A	N/A
RESAAS Services	$290,000.00	78.08	-$910,000.00	($0.03)	-9.44

Sterling Check has higher revenue and earnings than RESAAS Services.

Insider & Institutional Ownership

84.3% of Sterling Check shares are held by institutional investors. 8.2% of Sterling Check shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Sterling Check has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, RESAAS Services has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Sterling Check and RESAAS Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sterling Check	0	5	1	0	2.17
RESAAS Services	0	0	0	0	N/A

Sterling Check presently has a consensus price target of $15.30, suggesting a potential downside of 3.65%. Given Sterling Check’s higher probable upside, research analysts clearly believe Sterling Check is more favorable than RESAAS Services.

Summary

Sterling Check beats RESAAS Services on 11 of the 12 factors compared between the two stocks.

About Sterling Check

Sterling Check Corp. provides technology-enabled background and identity verification services in the United States, Canada, Europe, the Middle East and Africa, and the Asia Pacific. The company offers identity verification services, such as telecom and device verification, identification document verification, facial recognition with biometric matching, social security number verification, and live video chat identification proofing; fingerprinting; background checks, including criminal record checks, sex offender registries, civil court records, motor vehicle and driving license records, executive investigations, credit reports, social media searches, and contingent workforce solutions; liens, judgments, and bankruptcies; and sanctions, risk, and compliance checks. It also provides credential verification services, which include employment verification, education verification, credential verification, professional reference checks, and department of transportation; drug and health screening; onboarding solutions, including Sterling I-9 that integrates a suite of screening and onboarding services and onboarding forms; and workforce, medical license, and motor vehicle records monitoring solutions. The company's services are delivered through its cloud-based technology platform that empowers organizations with real-time and data-driven insights to conduct and manage their employment screening programs. It serves a client base in a range of industries, such as healthcare, gig economy, financial and business services, industrials, retail, contingent, technology, media and entertainment, transportation and logistics, hospitality, education, and government. The company was formerly known as Sterling Ultimate Parent Corp. and changed its name to Sterling Check Corp. in August 2021. Sterling Check Corp. was founded in 1975 and is headquartered in Independence, Ohio.

About RESAAS Services

RESAAS Services Inc. engages in the development of web and mobile communications software for the real estate industry. The company offers a suite of tools, which integrate with the platform, including a global referral network, lead generation engine, listing management, client engagement modules, customer relationship management tools, analytics, file sharing, payment system, and advertising engine. Its solutions include RealTimeMLS, a real-time listing solution and communication platform designed for real estate associations and multiple listing services (MLSs); and BrokerOS, an online communication hub that ensures agents open, read, and respond to the emails and messages sent to them by users. The company serves MLSs, franchises, and real estate brokerage and real estate agents in the real estate industry. RESAAS Services Inc. was incorporated in 2009 and is based in Vancouver, Canada.