Marin Software (NYSE: MRIN) and Incontact (NASDAQ:SAAS) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Marin Software and Incontact’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marin Software -28.27% -21.25% -17.30%
Incontact -10.24% -22.75% -10.27%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Marin Software and Incontact, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marin Software 0 1 0 0 2.00
Incontact 0 1 0 0 2.00

Marin Software presently has a consensus price target of $2.00, indicating a potential upside of 21.21%. Incontact has a consensus price target of $14.00, indicating a potential upside of 0.07%. Given Marin Software’s higher probable upside, equities research analysts plainly believe Marin Software is more favorable than Incontact.

Earnings & Valuation

This table compares Marin Software and Incontact’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marin Software $86.01 million 0.76 -$11.61 million ($0.63) -2.62
Incontact N/A N/A N/A ($0.31) -45.13

Incontact has higher revenue, but lower earnings than Marin Software. Incontact is trading at a lower price-to-earnings ratio than Marin Software, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Marin Software has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Incontact has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

27.8% of Marin Software shares are held by institutional investors. Comparatively, 93.5% of Incontact shares are held by institutional investors. 20.8% of Marin Software shares are held by insiders. Comparatively, 6.3% of Incontact shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Incontact beats Marin Software on 5 of the 9 factors compared between the two stocks.

About Marin Software

Marin Software Incorporated provides a cross-channel, cross-device, enterprise marketing software platform for search, display and social advertising channels. The Company’s enterprise marketing software platform is offered as an integrated software-as-a-service (SaaS) solution for advertisers and agencies. The Company’s platform enables digital marketers to manage performance of their online advertising campaigns. Its software solution is designed to help its customers measure the effectiveness of their advertising campaigns through its reporting and analytics capabilities; manage and execute campaigns through its user interface and underlying technology that streamlines and automates functions, such as advertisement creation and bidding, across multiple publishers and channels, and optimize campaigns across multiple publishers and channels based on market and business data using its predictive bid management technology.

About Incontact

inContact, Inc. (inContact) is a provider of cloud contact center software solutions. The Company provides a range of cloud contact center call routing, self-service and agent optimization solutions. The Company operates through two business segments: Software and Network connectivity. inContact’s Software segment includes the services related to the delivery of its cloud contact center software solutions. Its Network connectivity segment includes the voice and data long distance services provided to customers. It offers its products and services to its customers in approximately five vertical markets, such as customer services and sales business process outsourcers (BPOs), retail and direct response, healthcare providers, utilities, and state and local Government. It provides software, which includes Automatic call distributing, Computer telephony integration, Interactive voice response with speech recognition, Outbound dialer, Screen recording and Interactive reporting tool.

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