Research Solutions (NASDAQ:RSSS) versus Flywire (NASDAQ:FLYW) Head-To-Head Comparison

Flywire (NASDAQ:FLYW) and Research Solutions (NASDAQ:RSSS) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Institutional and Insider Ownership

95.9% of Flywire shares are owned by institutional investors. Comparatively, 33.6% of Research Solutions shares are owned by institutional investors. 3.9% of Flywire shares are owned by company insiders. Comparatively, 12.9% of Research Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Flywire has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Research Solutions has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares Flywire and Research Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flywire	4.23%	2.49%	1.86%
Research Solutions	-4.57%	8.43%	2.71%

Earnings and Valuation

This table compares Flywire and Research Solutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flywire	$475.14 million	5.35	-$8.57 million	$0.15	136.33
Research Solutions	$46.61 million	2.88	-$3.79 million	($0.08)	-51.63

Research Solutions has lower revenue, but higher earnings than Flywire. Research Solutions is trading at a lower price-to-earnings ratio than Flywire, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Flywire and Research Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flywire	0	4	10	1	2.80
Research Solutions	0	0	2	0	3.00

Flywire presently has a consensus target price of $25.29, suggesting a potential upside of 23.65%. Research Solutions has a consensus target price of $5.50, suggesting a potential upside of 33.17%. Given Research Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Research Solutions is more favorable than Flywire.

Summary

Flywire beats Research Solutions on 9 of the 15 factors compared between the two stocks.

About Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.

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.