Analyzing First Advantage (NYSE:FA) and International Monetary Systems (OTCMKTS:ITNM)

First Advantage (NYSE:FA) and International Monetary Systems (OTCMKTS:ITNM) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Profitability

This table compares First Advantage and International Monetary Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Advantage	0.65%	13.16%	7.33%
International Monetary Systems	N/A	N/A	N/A

Volatility & Risk

First Advantage has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, International Monetary Systems has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500.

Valuation and Earnings

This table compares First Advantage and International Monetary Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Advantage	$763.76 million	4.50	$37.29 million	$0.03	663.00
International Monetary Systems	N/A	N/A	N/A	N/A	N/A

First Advantage has higher revenue and earnings than International Monetary Systems.

Analyst Recommendations

This is a summary of current ratings and price targets for First Advantage and International Monetary Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Advantage	0	3	6	0	2.67
International Monetary Systems	0	0	0	0	0.00

First Advantage currently has a consensus price target of $58.83, indicating a potential upside of 195.79%. Given First Advantage’s stronger consensus rating and higher possible upside, analysts clearly believe First Advantage is more favorable than International Monetary Systems.

Insider & Institutional Ownership

94.9% of First Advantage shares are held by institutional investors. 5.3% of First Advantage shares are held by company insiders. Comparatively, 71.3% of International Monetary Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

First Advantage beats International Monetary Systems on 9 of the 10 factors compared between the two stocks.

About First Advantage

First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and other products comprising fleet/vehicle compliance, hiring tax credits and incentives, resident/tenant screening, and investigative research. Its products and solutions are used by personnel in recruiting, human resources, risk, compliance, vendor management, safety, and/or security in global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2002 and is based in Atlanta, Georgia.

About International Monetary Systems

International Monetary Systems Ltd. operates as a holding company. The firm engages in the management and operation of a barter trade exchange. It offers electronic mail promotions, monthly statements, 24-hour authorization service and internet trading. The company was founded in July 1985 and is headquartered in New Berlin, WI.