Critical Review: PhoneX (PXHI) & Its Competitors

Insider and Institutional Ownership

49.8% of shares of all “Personal services” companies are held by institutional investors. 21.5% of PhoneX shares are held by company insiders. Comparatively, 21.8% of shares of all “Personal services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares PhoneX and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PhoneX	3.46%	N/A	N/A
PhoneX Competitors	-155.66%	-79.47%	-0.78%

Valuation and Earnings

This table compares PhoneX and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PhoneX	$179.41 million	$6.41 million	6.63
PhoneX Competitors	$707.94 million	$27.38 million	197.39

PhoneX’s rivals have higher revenue and earnings than PhoneX. PhoneX is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

PhoneX has a beta of 2.26, indicating that its share price is 126% more volatile than the S&P 500. Comparatively, PhoneX’s rivals have a beta of 1.06, indicating that their average share price is 6% more volatile than the S&P 500.

Summary

PhoneX rivals beat PhoneX on 5 of the 9 factors compared.

PhoneX Company Profile

PhoneX Holdings, Inc. operates as a market maker of used smartphones. The company acquires products from individual consumers through its uSell.com Website, as well as from various carriers, big box retailers, and manufacturers through its subsidiary, We Sell Cellular. It sells its devices to professional buyers, such as brick and mortar retailers, online retailers, large and small wholesalers, small repair shops, large refurbishing providers, and insurance companies, as well as directly to consumers through third party e-commerce platforms. The company was formerly known as usell.com, Inc. and changed its name to PhoneX Holdings, Inc. in May 2019. PhoneX Holdings, Inc. was incorporated in 2003 and is headquartered in New York, New York.