MSP Recovery (NASDAQ:LIFW) & Yext (NYSE:YEXT) Critical Analysis

Yext (NYSE:YEXT) and MSP Recovery (NASDAQ:LIFW) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Yext and MSP Recovery, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	0	2	2	0	2.50
MSP Recovery	0	0	0	0	0.00

Yext presently has a consensus target price of $9.00, suggesting a potential upside of 38.46%. Given Yext’s stronger consensus rating and higher probable upside, research analysts clearly believe Yext is more favorable than MSP Recovery.

Earnings and Valuation

This table compares Yext and MSP Recovery”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$404.32 million	2.05	-$2.63 million	($0.15)	-43.33
MSP Recovery	$10.73 million	1.09	-$56.35 million	($142.50)	-0.01

Yext has higher revenue and earnings than MSP Recovery. Yext is trading at a lower price-to-earnings ratio than MSP Recovery, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Yext and MSP Recovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yext	-4.64%	-11.10%	-3.49%
MSP Recovery	-906.67%	-6.25%	-2.39%

Risk and Volatility

Yext has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, MSP Recovery has a beta of -2.38, meaning that its share price is 338% less volatile than the S&P 500.

Insider and Institutional Ownership

71.0% of Yext shares are owned by institutional investors. Comparatively, 3.8% of MSP Recovery shares are owned by institutional investors. 8.4% of Yext shares are owned by insiders. Comparatively, 86.5% of MSP Recovery shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Yext beats MSP Recovery on 10 of the 14 factors compared between the two stocks.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

About MSP Recovery

MSP Recovery, Inc., doing business as LifeWallet, operates as a healthcare recovery and data analytics company in the United States and Puerto Rico. The company offers claims recovery services, including services to related parties or third parties to assist entities with pursuit of claims recovery rights. It also provides LifeWallet, a scalable and expandable data ecosystem where tokenized data is stored in a platform with multiple applications, including LifeWallet EHR for hospitals, medical providers, major medical laboratories, and governmental entities that gather and store electronic health records; Chase to Pay, a real-time, or near real-time analytics driven platform that identifies the proper primary payer at the point of care; LifeChain which is in development in order to tokenize healthcare claims and patient records using blockchain technology; LifeWallet 911 which is in development for utilization by emergency service organizations; LifeWallet Legal; LifeWallet Health; and LifeWallet Sports which connected brands with college athletes. MSP Recovery, Inc. was founded in 2014 and is headquartered in Coral Gables, Florida.