Marchex (NASDAQ: MCHX) and Criteo (NASDAQ:CRTO) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Marchex and Criteo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marchex -15.53% -10.65% -9.44%
Criteo 3.48% 13.94% 7.74%

Risk and Volatility

Marchex has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Criteo has a beta of 2.66, indicating that its share price is 166% more volatile than the S&P 500.

Institutional and Insider Ownership

49.7% of Marchex shares are held by institutional investors. Comparatively, 83.7% of Criteo shares are held by institutional investors. 27.4% of Marchex shares are held by insiders. Comparatively, 5.6% of Criteo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Marchex and Criteo’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marchex $105.54 million 1.11 -$12.35 million ($0.39) -7.85
Criteo $2.05 billion 1.39 $186.34 million $1.08 42.72

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

Analyst Ratings

This is a summary of recent recommendations for Marchex and Criteo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marchex 0 1 0 0 2.00
Criteo 0 6 8 0 2.57

Marchex currently has a consensus target price of $3.00, suggesting a potential downside of 1.96%. Criteo has a consensus target price of $56.14, suggesting a potential upside of 21.67%. Given Criteo’s stronger consensus rating and higher probable upside, analysts clearly believe Criteo is more favorable than Marchex.

Summary

Criteo beats Marchex on 12 of the 13 factors compared between the two stocks.

About Marchex

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.

About Criteo

Criteo SA is a France-based company specializing in digital performance marketing. Its solution consists of the Criteo Engine, the Company’s data assets, access to inventory, and its advertiser and publisher platforms. The Criteo Engine consists of various machine learning algorithms, such as prediction, recommendation, bidding and creative algorithms and the global hardware and software infrastructure. The Criteo Engine delivers advertisements through multiple marketing channels and formats, including display advertising banners, native advertising banners and marketing messages delivered to opt-in e-mail addresses. Advertisements are delivered on all devices and screens, including Web browsers on desktops and laptops, mobile Web browsers on smartphones and tablets, as well as mobile applications. It operates in approximately 90 countries through a network of over 30 international offices located in Europe, the Americas and the Asia-Pacific region. It operates through HookLogic Inc.

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