Critical Comparison: Holiday Island (OTCMKTS:HIHI) versus Research Solutions (NASDAQ:RSSS)

Holiday Island (OTCMKTS:HIHI) and Research Solutions (NASDAQ:RSSS) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Holiday Island and Research Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Holiday Island	0	0	0	0	N/A
Research Solutions	0	0	3	0	3.00

Research Solutions has a consensus target price of $5.12, suggesting a potential upside of 104.67%. Given Research Solutions’ higher probable upside, analysts plainly believe Research Solutions is more favorable than Holiday Island.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Holiday Island	N/A	N/A	N/A
Research Solutions	-1.39%	-5.58%	-1.88%

Earnings & Valuation

This table compares Holiday Island and Research Solutions’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Holiday Island	N/A	N/A	N/A	N/A	N/A
Research Solutions	$37.70 million	2.14	$570,000.00	($0.03)	-83.33

Research Solutions has higher revenue and earnings than Holiday Island.

Volatility & Risk

Holiday Island has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Research Solutions has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

33.6% of Research Solutions shares are held by institutional investors. 15.2% of Holiday Island shares are held by company insiders. Comparatively, 26.5% of Research Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Research Solutions beats Holiday Island on 5 of the 9 factors compared between the two stocks.

About Holiday Island

Holiday Island Holdings, Inc. primarily engages in land development activities. It acquires, develops, manages, and sells income producing commercial and residential real estate properties located in Holiday Island, Arkansas. The company was formerly known as VillageEDOCS, Inc. and changed its name to Holiday Island Holdings, Inc. in February 2014. Holiday Island Holdings, Inc. was founded in 1996 and is based in Holiday Island, Arkansas.

About Research Solutions

Research Solutions, Inc., through its subsidiaries, provides cloud-based software-as-a-service research platform. The company is also involved in the transactional sale of published scientific, technical, and medical (STM) content managed, sourced, and delivered through the Transactions platform. Its solutions enable life science and other research intensive organizations to accelerate their research and development activities with access and management STM articles used throughout the intellectual property development lifecycle. 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.