Analyzing Blue Sphere (OTCMKTS:BLSP) and System1 (NYSE:SST)

System1 (NYSE:SST) and Blue Sphere (OTCMKTS:BLSP) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Volatility and Risk

System1 has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Blue Sphere has a beta of -4.79, meaning that its stock price is 579% less volatile than the S&P 500.

Insider and Institutional Ownership

87.5% of System1 shares are owned by institutional investors. 14.1% of System1 shares are owned by insiders. Comparatively, 8.1% of Blue Sphere shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for System1 and Blue Sphere, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
System1	0	1	0	0	2.00
Blue Sphere	0	0	0	0	0.00

System1 presently has a consensus price target of $2.00, indicating a potential upside of 192.40%. Given System1’s stronger consensus rating and higher possible upside, equities analysts clearly believe System1 is more favorable than Blue Sphere.

Earnings & Valuation

This table compares System1 and Blue Sphere”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
System1	$401.97 million	0.16	-$227.22 million	($1.21)	-0.57
Blue Sphere	N/A	N/A	N/A	N/A	N/A

Blue Sphere has lower revenue, but higher earnings than System1.

Profitability

This table compares System1 and Blue Sphere’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
System1	-24.18%	-68.85%	-18.27%
Blue Sphere	N/A	N/A	N/A

Summary

System1 beats Blue Sphere on 6 of the 9 factors compared between the two stocks.

About System1

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.

About Blue Sphere

Blue Sphere Corporation operates as a developer and independent power producer in the clean energy production and waste to energy markets. The company focuses on projects related to the acquisition, construction, and development of biogas facilities in the United States, Italy, the Netherlands, the United Kingdom, and Israel. It also focuses on soil amendments, compost, and other by-products. The company was formerly known as Jin Jie Corp. and changed its name to Blue Sphere Corporation in February 2010. Blue Sphere Corporation was founded in 2007 and is based in Charlotte, North Carolina.