Alight (NYSE:ALIT) & Spindle (OTCMKTS:SPDL) Critical Analysis

Spindle (OTCMKTS:SPDL) and Alight (NYSE:ALIT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Profitability

This table compares Spindle and Alight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spindle	N/A	N/A	N/A
Alight	-7.95%	5.61%	2.52%

Insider and Institutional Ownership

96.7% of Alight shares are owned by institutional investors. 14.6% of Spindle shares are owned by insiders. Comparatively, 5.3% of Alight shares are owned 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Spindle and Alight, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spindle	0	0	0	0	0.00
Alight	0	1	9	0	2.90

Alight has a consensus target price of $10.95, suggesting a potential upside of 36.88%. Given Alight’s stronger consensus rating and higher probable upside, analysts clearly believe Alight is more favorable than Spindle.

Earnings and Valuation

This table compares Spindle and Alight”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spindle	N/A	N/A	N/A	N/A	N/A
Alight	$3.36 billion	1.29	-$345.00 million	($0.48)	-16.67

Spindle has higher earnings, but lower revenue than Alight.

Summary

Alight beats Spindle on 7 of the 9 factors compared between the two stocks.

About Spindle

Spindle, Inc. provides payment-processing services to merchants using its Catalyst Gateway. It also acts as an agent, independent contractor, or referral partner to broker merchants that it secures to other merchant processors for ongoing fees based on processing volume. The company serves small and medium-sized businesses. The company is based in Marco Island, Florida.

About Alight

Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.