Social Reality (NASDAQ: SRAX) and Autobytel (NASDAQ:ABTL) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

0.8% of Social Reality shares are owned by institutional investors. Comparatively, 58.6% of Autobytel shares are owned by institutional investors. 22.3% of Social Reality shares are owned by insiders. Comparatively, 12.8% of Autobytel shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Social Reality has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Autobytel has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Social Reality and Autobytel, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Social Reality 0 0 1 0 3.00
Autobytel 0 1 1 0 2.50

Social Reality presently has a consensus target price of $5.00, suggesting a potential upside of 284.70%. Autobytel has a consensus target price of $20.00, suggesting a potential upside of 160.76%. Given Social Reality’s stronger consensus rating and higher probable upside, equities analysts plainly believe Social Reality is more favorable than Autobytel.

Profitability

This table compares Social Reality and Autobytel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Social Reality -20.04% -93.45% -29.69%
Autobytel 3.15% 10.96% 8.20%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Social Reality $32.35 million 0.32 -$4.16 million ($0.95) -1.37
Autobytel $156.22 million 0.63 $14.97 million $0.37 20.73

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

Summary

Autobytel beats Social Reality on 9 of the 12 factors compared between the two stocks.

About Social Reality

Social Reality, Inc. is an Internet advertising and platform technology company. The Company provides tools to automate the digital advertising market. It is engaged in the sales of digital media advertising campaigns to advertising agencies and brands; sales of media inventory through real-time bidding (RTB) exchanges; sale and licensing of its SRAX Social platform and related media, and creation of custom platforms for buying media on SRAX for various brands. Its technology assists publishers in delivering their media inventory to the RTB exchanges. It provides the SRAX platform to brands and their advertising agencies. SRAX Social is a social media and loyalty platform that allows brands to launch and manage their social media initiatives. SRAX MD is an advertisement targeting and data platform for healthcare brands and medical content publishers. SRAX APP is a platform that allows publishers and content owners to launch native mobile applications through its SRAX platform.

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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