Social Reality (NASDAQ: SRAX) and Sizmek (NASDAQ:SZMK) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Earnings and Valuation

This table compares Social Reality and Sizmek’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Social Reality $32.35 million 1.11 -$4.16 million ($0.95) -4.72
Sizmek N/A N/A N/A ($4.29) -0.91

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

Insider & Institutional Ownership

0.8% of Social Reality shares are held by institutional investors. Comparatively, 41.6% of Sizmek shares are held by institutional investors. 22.3% of Social Reality shares are held by company insiders. Comparatively, 15.0% of Sizmek shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Social Reality and Sizmek’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%
Sizmek -2.13% -3.56% -2.52%

Analyst Recommendations

This is a breakdown of recent ratings for Social Reality and Sizmek, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Social Reality 0 0 1 0 3.00
Sizmek 0 0 0 0 N/A

Social Reality presently has a consensus target price of $5.00, indicating a potential upside of 11.61%. Given Social Reality’s higher possible upside, research analysts plainly believe Social Reality is more favorable than Sizmek.

Volatility and Risk

Social Reality has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Sizmek has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

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 Sizmek

Sizmek Inc. (Sizmek) is an open ad management company. The Company operates an independent online advertisement campaign management and distribution platform. The Company helps advertisers, agencies and publishers engage with consumers across multiple online media channels (mobile, display, video and social). It connects approximately 19,000 advertisers and 3,700 agencies to audiences in over 60 countries. Its online campaign management platform, Sizmek MDX, helps advertisers, agencies and publishers in managing their advertising budgets across multiple online media channels and formats, such as desktop, mobile, rich media, social media, in-stream video, interactive video, display and search. The Sizmek MDX platform provides its customers with an end-to-end solution in planning, creative, delivery, measurement and optimization of online media campaigns. Its solutions are delivered through a technology platform that allows delivery of global online media advertising campaigns.

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