Millennial Media (NYSE: MM) and Autobytel (NASDAQ:ABTL) are both small-cap cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitabiliy and risk.

Profitability

This table compares Millennial Media and Autobytel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Millennial Media -23.47% -26.25% -19.24%
Autobytel 3.19% 11.95% 8.77%

Earnings and Valuation

This table compares Millennial Media and Autobytel’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Millennial Media N/A N/A N/A N/A N/A
Autobytel $157.78 million 0.99 $15.68 million $0.38 37.08

Autobytel has higher revenue and earnings than Millennial Media.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Millennial Media and Autobytel, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Millennial Media 0 0 0 0 N/A
Autobytel 0 0 2 0 3.00

Autobytel has a consensus price target of $24.00, suggesting a potential upside of 70.33%. Given Autobytel’s higher possible upside, analysts plainly believe Autobytel is more favorable than Millennial Media.

Institutional & Insider Ownership

64.9% of Autobytel shares are owned by institutional investors. 13.3% of Autobytel shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Autobytel beats Millennial Media on 8 of the 8 factors compared between the two stocks.

About Millennial Media

Millennial Media, Inc. is an independent mobile advertising marketplace delivering products and services to advertisers and developers. The Company offers advertisers a suite of solutions that allow them to reach and connect with the target audiences across screens, from smartphones, tablets and other mobile devices to PCs. The Company offers developers the ability to maximize the advertising revenue and acquire new users for apps. Its advertiser and developer solutions support all mobile operating systems, including Apple iOS, Android, Windows Phone and BlackBerry. For clients who want a higher degree of customer service, the Company offers its managed media services with dedicated account teams. For its clients who want to interact with it on a more automated basis, the Company offers tools that allow advertisers to buy its ad supply in a programmatic fashion through its ad exchange and developers the opportunity to manage and monetize the ad inventory through its supply side tool.

About Autobytel

Autobytel Inc. is an automotive marketing services company that assists automotive retail dealers and automotive manufacturers market and sell new and used vehicles to consumers through the programs for online lead referrals, dealer marketing products and services, and online advertising programs and mobile products. The Company operates through providing automotive marketing services segment. Its consumer-facing automotive Websites, including Website Autobytel.com, provide consumers with information and tools to aid them with the automotive purchase decisions and ability to submit inquiries requesting dealers to contact the consumers regarding purchasing or leasing vehicles. Its AutoWeb pay-per-click advertising marketplace program uses technology to refer consumer traffic to dealers and manufacturer Websites. For consumers who may not be able to secure loans through conventional lending sources, the Websites provide these consumers the ability to submit inquiries requesting dealers.

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