Flywire (NASDAQ:FLYW) vs. Research Solutions (NASDAQ:RSSS) Head to Head Review

Research Solutions (NASDAQ:RSSS) and Flywire (NASDAQ:FLYW) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

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

Risk & Volatility

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

Profitability

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

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

Analyst Ratings

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

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

Research Solutions presently has a consensus target price of $5.50, suggesting a potential upside of 32.85%. Flywire has a consensus target price of $25.29, suggesting a potential upside of 24.87%. Given Research Solutions’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Research Solutions is more favorable than Flywire.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Research Solutions	$46.61 million	2.89	-$3.79 million	($0.08)	-51.75
Flywire	$475.14 million	5.30	-$8.57 million	$0.15	135.00

Research Solutions has higher earnings, but lower revenue 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.

Summary

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

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.

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.