Critical Analysis: Steel Connect (NASDAQ:STCN) and Auto Parts 4Less Group (OTC:FLES)

Volatility & Risk

Auto Parts 4Less Group has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Steel Connect has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Earnings and Valuation

This table compares Auto Parts 4Less Group and Steel Connect”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Auto Parts 4Less Group	$4.20 million	0.00	-$17.78 million	($5.73)	0.00
Steel Connect	$174.11 million	0.45	$87.98 million	$3.07	3.98

Steel Connect has higher revenue and earnings than Auto Parts 4Less Group. Auto Parts 4Less Group is trading at a lower price-to-earnings ratio than Steel Connect, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

47.3% of Steel Connect shares are held by institutional investors. 26.3% of Auto Parts 4Less Group shares are held by company insiders. Comparatively, 8.7% of Steel Connect shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Auto Parts 4Less Group and Steel Connect’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Auto Parts 4Less Group	N/A	N/A	N/A
Steel Connect	50.53%	14.59%	3.67%

Summary

Steel Connect beats Auto Parts 4Less Group on 9 of the 11 factors compared between the two stocks.

About Auto Parts 4Less Group

Auto Parts 4Less Group, Inc., operates as an e-commerce auto and truck parts sales company in the United States. The company offers automotive parts, including exhaust systems, suspension systems, wheels, tires, stereo systems, truck bed covers, and shocks for cars, trucks, boats, motorcycles, RVs, and other parts through AutoParts4Less.com. The company was formerly known as The 4Less Group, Inc. and changed its name to Auto Parts 4Less Group, Inc. in April 2022. Auto Parts 4Less Group, Inc. is based in Las Vegas, Nevada.

About Steel Connect

Steel Connect, Inc., together with its subsidiaries, provides supply chain services in the United States, Mainland China, Netherlands, and internationally. It offers product configuration and packaging, kitting, and assembly of components and parts into finished goods; and value-added processes, such as product testing, radio frequency identification tagging, product or service activation, language settings, personalization and engraving, multi-channel packaging, and packaging design services. The company provides fulfillment services comprising order management, pick, pack and ship, retail compliance, and demand planning services; and reverse logistics services that simplifies the returns process for retailers and manufacturers, as well as operates a cloud-based e-commerce platform. In addition, it offers warehousing and inventory management services; and software licenses, maintenance, and support services. Further, the company offers its supply chain services to customers in the consumer electronics, communications, computing, medical devices, software, and retail markets. The company was formerly known as ModusLink Global Solutions, Inc. and changed its name to Steel Connect, Inc. in February 2018. Steel Connect, Inc. was incorporated in 1986 and is headquartered in New York, New York.