TuanChe (NASDAQ:TC) versus Rimini Street (NASDAQ:RMNI) Critical Analysis

TuanChe (NASDAQ:TC) and Rimini Street (NASDAQ:RMNI) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Ratings

This is a summary of current ratings and target prices for TuanChe and Rimini Street, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TuanChe	0	0	0	0	0.00
Rimini Street	0	0	2	0	3.00

Rimini Street has a consensus price target of $5.25, indicating a potential upside of 51.30%. Given Rimini Street’s stronger consensus rating and higher possible upside, analysts clearly believe Rimini Street is more favorable than TuanChe.

Valuation & Earnings

This table compares TuanChe and Rimini Street”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TuanChe	$102.52 million	0.02	-$11.69 million	N/A	N/A
Rimini Street	$428.75 million	0.74	$26.06 million	($0.40)	-8.68

Rimini Street has higher revenue and earnings than TuanChe.

Institutional & Insider Ownership

8.9% of TuanChe shares are held by institutional investors. Comparatively, 73.8% of Rimini Street shares are held by institutional investors. 0.5% of TuanChe shares are held by insiders. Comparatively, 41.0% of Rimini Street shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares TuanChe and Rimini Street’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TuanChe	N/A	N/A	N/A
Rimini Street	-7.87%	-83.26%	10.79%

Volatility and Risk

TuanChe has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Rimini Street has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Summary

Rimini Street beats TuanChe on 10 of the 12 factors compared between the two stocks.

About TuanChe

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.

About Rimini Street

Rimini Street, Inc. provides enterprise software products, services, and support. The company engages in the provision of support services for Oracle and SAP enterprise software products. It also provides Rimini ONE, an outsourcing option that offers a set of unified and integrated services to run, manage, support, customize, configure, connect, protect, monitor, and optimize its clients’ application, database, and technology enterprise software; Rimini Support, a mission-critical support for Oracle, SAP, proprietary and open-source database, and technology software; Rimini Manage, a suite of managed services for application and database software; Rimini Protect, a suite of personalized software security services and solutions; and Rimini Connect, a suite of managed interoperability solutions for browsers, operating systems, and email systems. In addition, the company offers Rimini Watch, a suite of observability solutions that include monitoring and system health check solutions; Rimini Consult, a suite of professional services for clients’ enterprise software customization, configuration, implementation, integration, interoperability, migration, staff augmentation, and other project needs; and Rimini Custom, a program that expands support and related services to a broader portfolio of enterprise software. The company serves Fortune 500 companies and Fortune Global 100 companies across various industries. It sells its solutions primarily through direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia-Pacific. The company was incorporated in 2005 and is headquartered in Las Vegas, Nevada.