MDC Partners (NASDAQ: MDCA) and Sizmek (NASDAQ:SZMK) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitabiliy, valuation, risk, earnings and dividends.

Volatility & Risk

MDC Partners has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Sizmek has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Valuation and Earnings

This table compares MDC Partners and Sizmek’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MDC Partners $1.42 billion 0.42 $149.12 million ($0.68) -15.37
Sizmek N/A N/A N/A ($4.29) -0.91

MDC Partners has higher revenue and earnings than Sizmek. MDC Partners is trading at a lower price-to-earnings ratio than Sizmek, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MDC Partners and Sizmek’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MDC Partners -2.48% -3.65% 1.15%
Sizmek -2.13% -3.56% -2.52%

Analyst Ratings

This is a breakdown of recent ratings and price targets for MDC Partners and Sizmek, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MDC Partners 0 4 3 0 2.43
Sizmek 0 0 0 0 N/A

MDC Partners presently has a consensus target price of $11.83, indicating a potential upside of 13.24%. Given MDC Partners’ higher possible upside, equities analysts clearly believe MDC Partners is more favorable than Sizmek.

Dividends

MDC Partners pays an annual dividend of $0.21 per share and has a dividend yield of 2.0%. Sizmek does not pay a dividend. MDC Partners pays out -30.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

86.1% of MDC Partners shares are held by institutional investors. Comparatively, 41.6% of Sizmek shares are held by institutional investors. 3.4% of MDC Partners shares are held by company insiders. Comparatively, 15.0% of Sizmek shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

MDC Partners beats Sizmek on 9 of the 12 factors compared between the two stocks.

MDC Partners Company Profile

MDC Partners Inc. is a provider of global marketing, advertising, activation, communications and strategic consulting solutions. The Company and its subsidiary agencies (Partner Firms) deliver a range of customized services. The Company’s segments include Reportable Segment, All Other and Corporate. The Reportable segment consists of the Company’s integrated advertising, media and public relations service companies. The All Other segment consists of the companies that provide the Company’s specialist marketing offerings, such as direct marketing, sales promotion, market research, strategic communications, database and customer relationship management, data analytics and insights, corporate identity, and design and branding. The Reportable segment includes the operations of various companies, such as Allison & Partners, Anomaly, Crispin Porter + Bogusky, Doner, Forsman & Bodenfors, Hunter PR, kbs, MDC Media Partners and 72andSunny.

Sizmek Company Profile

Sizmek Inc. (Sizmek) is an open ad management company. The Company operates an independent online advertisement campaign management and distribution platform. The Company helps advertisers, agencies and publishers engage with consumers across multiple online media channels (mobile, display, video and social). It connects approximately 19,000 advertisers and 3,700 agencies to audiences in over 60 countries. Its online campaign management platform, Sizmek MDX, helps advertisers, agencies and publishers in managing their advertising budgets across multiple online media channels and formats, such as desktop, mobile, rich media, social media, in-stream video, interactive video, display and search. The Sizmek MDX platform provides its customers with an end-to-end solution in planning, creative, delivery, measurement and optimization of online media campaigns. Its solutions are delivered through a technology platform that allows delivery of global online media advertising campaigns.

Receive News & Ratings for MDC Partners Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MDC Partners Inc. and related companies with MarketBeat.com's FREE daily email newsletter.