Critical Contrast: Zagg (ZAGG) versus CafePress (NASDAQ:PRSS)

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Zagg (NASDAQ: ZAGG) and CafePress (NASDAQ:PRSS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Zagg and CafePress, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zagg 0 2 4 0 2.67
CafePress 0 0 0 0 N/A

Zagg currently has a consensus price target of $19.83, suggesting a potential upside of 11.11%. Given Zagg’s higher probable upside, equities research analysts clearly believe Zagg is more favorable than CafePress.

Insider and Institutional Ownership

85.1% of Zagg shares are owned by institutional investors. Comparatively, 8.3% of CafePress shares are owned by institutional investors. 5.8% of Zagg shares are owned by insiders. Comparatively, 17.3% of CafePress shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Zagg and CafePress’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zagg 5.25% 31.62% 13.96%
CafePress -12.80% -29.35% -22.99%

Risk and Volatility

Zagg has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, CafePress has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Earnings and Valuation

This table compares Zagg and CafePress’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zagg $519.49 million 0.97 $15.10 million $0.97 18.40
CafePress $85.68 million 0.26 -$10.25 million N/A N/A

Zagg has higher revenue and earnings than CafePress.

Summary

Zagg beats CafePress on 10 of the 11 factors compared between the two stocks.

About Zagg

ZAGG Inc, together with its subsidiaries, designs, manufactures, and distributes mobile tech accessories for smartphones and tablets in the United States, Europe, and internationally. It operates in ZAGG and mophie segments. The company offers screen protection products; battery cases and power management products for tablets, smartphones, MP3 players, cameras, and other electronic mobile devices; device specific keyboards and device agnostic keyboards; and earbuds, headphones, wireless charging products, Bluetooth speakers, and cables under the ZAGG, InvisibleShield, IFROGZ, and mophie brands. It sells its products through indirect channels, including big box retailers, wireless retailers, domestic and international distributors, independent Apple retailers, university bookstores, and small independently owned consumer electronics stores, as well as directly to retailers or through distributors; and directly to consumers on its Websites at ZAGG.com and mophie.com. The company also sells its products to franchisees that operate kiosks and ZAGG branded stores in shopping malls and retail centers. ZAGG Inc is headquartered in Midvale, Utah.

About CafePress

CafePress Inc. operates as retailer of personalized products in the United States and internationally. The company offers gifts and accessories, including T-shirts and apparel; mugs and drinkware; and home goods, such as custom shower curtains and bed coverings. It conducts its business on its primary United States based domain, CafePress.com; and operates CafePress branded Websites for the markets in the United Kingdom, Canada, and Australia. The company also sells CafePress branded products through other online retail partners. The company was formerly known as CafePress.com, Inc. and changed its name to CafePress Inc. in June 2011. CafePress Inc. was founded in 1999 and is headquartered in Louisville, Kentucky.

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