Critical Comparison: Castlight Health (CSLT) versus Marin Software (MRIN)

Castlight Health (NYSE:CSLT) and Marin Software (NYSE:MRIN) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Castlight Health and Marin Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Castlight Health -38.02% -22.89% -16.51%
Marin Software -49.21% -39.32% -30.51%

Analyst Recommendations

This is a breakdown of recent ratings for Castlight Health and Marin Software, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Castlight Health 0 1 4 0 2.80
Marin Software 0 0 0 0 N/A

Castlight Health currently has a consensus target price of $5.70, indicating a potential upside of 145.69%. Given Castlight Health’s higher probable upside, analysts plainly believe Castlight Health is more favorable than Marin Software.

Institutional and Insider Ownership

49.8% of Castlight Health shares are owned by institutional investors. Comparatively, 16.6% of Marin Software shares are owned by institutional investors. 22.6% of Castlight Health shares are owned by insiders. Comparatively, 9.7% of Marin Software shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Castlight Health has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Marin Software has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Earnings and Valuation

This table compares Castlight Health and Marin Software’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Castlight Health $131.43 million 2.43 -$55.57 million ($0.26) -8.92
Marin Software $74.99 million 0.24 -$31.49 million N/A N/A

Marin Software has lower revenue, but higher earnings than Castlight Health.

Summary

Castlight Health beats Marin Software on 9 of the 11 factors compared between the two stocks.

About Castlight Health

Castlight Health, Inc. provides a software-as-a-service platform used for health benefits navigation for employees in the United States. Its platform matches employees to the resources their employers make available to them; managing a condition; and assists them to manage their benefits. The company also offers communication and testing, implementation, and user customer support services. It serves customers in a range of industries, including education, manufacturing, retail, technology, and government. The company was formerly known as Ventana Health Services and changed its name to Castlight Health, Inc. in April 2010. Castlight Health, Inc. was founded in 2008 and is headquartered in San Francisco, California.

About Marin Software

Marin Software Incorporated operates a cross-channel, cross-device, enterprise marketing software platform in the United States and internationally. Its platform allows marketing professionals to manage their digital advertising spend across search, social, and display advertising channels. The company's platform consists of various modules, including Optimization module that helps advertisers to manage bids across publishers to meet revenue goals and identify opportunities for campaign improvements; Reporting and Analytics module that enables advertisers to report results at a business level and analyze cross-channel performance trends; Campaign Management module, which provides the digital advertiser with an interface to create, manage, and optimize campaigns across various publishers; and Connect module that enables advertisers to automate and streamline the capture of revenue, cost, and audience data from a range of sources, such as advertisement servers, analytics systems, CRM platforms, publishers, and third party databases. It also provides Marin Enterprise that provides digital advertisers to manage large-scale advertising campaigns; Marin Professional that is designed for rapid deployment and offers customers a workflow, analysis, and optimization solution for managing digital advertising; and Perfect Audience for rapid deployment, as well as to implement and optimize campaigns across various networks and across devices. The company markets and sells its solutions to advertisers directly and through advertising agencies that use its platform on behalf of their customers. Marin Software Incorporated was founded in 2006 and is headquartered in San Francisco, California.

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