Social Reality (NASDAQ: SRAX) is one of 37 publicly-traded companies in the “Advertising & Marketing” industry, but how does it contrast to its competitors? We will compare Social Reality to similar companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, dividends, valuation and risk.

Volatility and Risk

Social Reality has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Social Reality’s competitors have a beta of 1.05, suggesting that their average share price is 5% more volatile than the S&P 500.

Valuation and Earnings

This table compares Social Reality and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Social Reality $32.35 million -$4.16 million -2.97
Social Reality Competitors $1.10 billion $149.96 million 19.91

Social Reality’s competitors have higher revenue and earnings than Social Reality. Social Reality is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

0.8% of Social Reality shares are held by institutional investors. Comparatively, 59.3% of shares of all “Advertising & Marketing” companies are held by institutional investors. 22.3% of Social Reality shares are held by insiders. Comparatively, 22.1% of shares of all “Advertising & Marketing” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Social Reality and its competitors’ 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%
Social Reality Competitors -7.21% -10.09% -3.33%

Analyst Recommendations

This is a breakdown of recent ratings for Social Reality and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Social Reality 0 0 1 0 3.00
Social Reality Competitors 75 523 916 19 2.57

Social Reality currently has a consensus price target of $5.00, indicating a potential upside of 77.30%. As a group, “Advertising & Marketing” companies have a potential upside of 15.38%. Given Social Reality’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Social Reality is more favorable than its competitors.

Summary

Social Reality competitors beat Social Reality on 7 of the 12 factors compared.

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.

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