Reviewing Marchex (MCHX) and MDC Partners (MDCA)
Marchex (NASDAQ: MCHX) and MDC Partners (NASDAQ:MDCA) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Valuation and Earnings
This table compares Marchex and MDC Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marchex||$105.54 million||1.26||-$12.35 million||($0.39)||-7.95|
|MDC Partners||$1.47 billion||0.45||$150.77 million||($0.56)||-20.09|
MDC Partners has higher revenue and earnings than Marchex. MDC Partners is trading at a lower price-to-earnings ratio than Marchex, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
49.7% of Marchex shares are held by institutional investors. Comparatively, 83.7% of MDC Partners shares are held by institutional investors. 27.4% of Marchex shares are held by company insiders. Comparatively, 3.4% of MDC Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of recent ratings and target prices for Marchex and MDC Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Marchex presently has a consensus price target of $3.00, suggesting a potential downside of 3.23%. MDC Partners has a consensus price target of $12.17, suggesting a potential upside of 8.15%. Given MDC Partners’ stronger consensus rating and higher possible upside, analysts clearly believe MDC Partners is more favorable than Marchex.
Risk and Volatility
Marchex has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, MDC Partners has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.
This table compares Marchex and MDC Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
MDC Partners beats Marchex on 10 of the 13 factors compared between the two stocks.
Marchex Company Profile
Marchex, Inc. is a mobile advertising analytics company. The Company offers products and services for enterprises that depend on consumer phone calls to drive sales. Its media analytics products can provide actionable intelligence on media channels advertisers use to acquire customers over the phone. Its Marchex Omnichannel Analytics Cloud helps marketers connect customer conversions driven from paid media channels, including search, display and video, social and sites, to phone calls made to a business. Its product offerings include Marchex Call Analytics, Marchex Search Analytics, Marchex Display and Video Analytics, Marchex Social Analytics, Marchex Call Marketplace and Local Leads. Its Local Leads platform is a white-labeled, full service advertising solution for small business resellers, such as Yellow Pages providers and vertical marketing service providers, to sell call advertising, search marketing and other lead generation products.
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.
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