JMU Ltd- (NASDAQ:JMU) and Net Element (NASDAQ:NETE) 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 dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Insider & Institutional Ownership

1.8% of JMU Ltd- shares are held by institutional investors. Comparatively, 6.2% of Net Element shares are held by institutional investors. 62.8% of JMU Ltd- shares are held by company insiders. Comparatively, 19.0% of Net Element shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares JMU Ltd- and Net Element’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JMU Ltd- -216.40% -17.74% -10.51%
Net Element -6.86% -41.31% -15.11%

Analyst Recommendations

This is a breakdown of current recommendations for JMU Ltd- and Net Element, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JMU Ltd- 0 0 0 0 N/A
Net Element 0 0 0 0 N/A

Valuation & Earnings

This table compares JMU Ltd- and Net Element’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JMU Ltd- $88.74 million 0.11 -$161.89 million N/A N/A
Net Element $65.79 million 0.25 -$4.94 million ($1.12) -3.54

Net Element has lower revenue, but higher earnings than JMU Ltd-.

Volatility & Risk

JMU Ltd- has a beta of -0.46, suggesting that its share price is 146% less volatile than the S&P 500. Comparatively, Net Element has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Summary

Net Element beats JMU Ltd- on 5 of the 9 factors compared between the two stocks.

JMU Ltd- Company Profile

JMU Limited operates a business-to-business online e-commerce platform that provides integrated services to suppliers and customers in the catering industry in the People's Republic of China. The company's platform networking services focus on local entertainment and lifestyle services, such as restaurants, movie theaters, and beauty salons, as well as allow local merchants to create online stores and make direct sales to their target customers for consumption at their brick and mortar stores. It primarily offers food ingredients, seasonings, alcoholic and non-alcoholic drinks, hotel appliances, tableware, kitchen appliances, office appliances, furniture, hotel and restaurant decoration, and hotel and restaurant information systems through its ccjoin.com Website, as well as mobile applications. The company was formerly known as JM WOWO and changed its name to JMU Limited in December 2016. JMU Limited was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.

Net Element Company Profile

Net Element, Inc. operates as a financial technology and value-added solutions company. It operates in two segments, North American Transaction Solutions, and International Transaction Solutions. The company offers a range of payment acceptance and processing services that enable merchants of various sizes to accept and process approximately 100 payment options, including credit, debit, prepaid, and alternative payments; and value-added services and technologies, such as integrated payment technologies, point-of-sale solutions (POS), security solutions, fraud management, information solutions, and analytical tools. Its services include Unified Payments, a payment acceptance solution; Unified m-POS, an easy-to-use mobile application for small and medium sized businesses (SMB); Aptito, a cloud-based POS platform for the hospitality industry and SMB merchants; Restoactive, a visual POS integration solution for restaurants; Zero Pay, a payment acceptance program for SMB merchants; PayOnline, an integrated e-commerce and mobile payments processing platform, and fraud management system; Pay–Travel, a payment processing solutions to the travel industry; Sales Central, a cloud-based solution to enhance responsiveness of indirect non-bank sales forces and sales efficiency; Netevia, which delivers end-to-end payment processing through easy-to-use APIs; and Digital Provider, an integrated direct-carrier and mobile operator solution for smaller content providers and merchants throughout selected international markets. It operates in North America, Russia, Europe, Asia, and the Commonwealth of Independent States. The company was formerly known as Net Element International, Inc. and changed its name to Net Element, Inc. in December 2013. Net Element, Inc. was founded in 2004 and is based in North Miami Beach, Florida.

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