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

Institutional & Insider Ownership

0.8% of Social Reality shares are owned by institutional investors. Comparatively, 59.3% of shares of all “Advertising & Marketing” companies are owned by institutional investors. 22.3% of Social Reality shares are owned by insiders. Comparatively, 22.1% of shares of all “Advertising & Marketing” companies 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.

Profitability

This table compares Social Reality and its peers’ 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 -7.37% -10.02% -3.30%

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Social Reality $32.35 million -$4.16 million -2.62
Social Reality Competitors $1.10 billion $149.96 million 19.85

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

Analyst Ratings

This is a summary of current ratings and target prices for Social Reality and its peers, 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 43 416 873 16 2.64

Social Reality currently has a consensus price target of $5.00, indicating a potential upside of 100.80%. As a group, “Advertising & Marketing” companies have a potential upside of 13.51%. Given Social Reality’s stronger consensus rating and higher possible upside, analysts clearly believe Social Reality is more favorable than its peers.

Risk and Volatility

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

Summary

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

Social Reality Company Profile

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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