Cardlytics (NASDAQ:CDLX – Get Free Report) and Locafy (NASDAQ:LCFY – Get Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.
Institutional and Insider Ownership
68.1% of Cardlytics shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 4.4% of Cardlytics shares are held by company insiders. Comparatively, 28.7% of Locafy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for Cardlytics and Locafy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cardlytics | 1 | 5 | 0 | 0 | 1.83 |
| Locafy | 0 | 0 | 0 | 0 | N/A |
Valuation and Earnings
This table compares Cardlytics and Locafy’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cardlytics | $305.42 million | 0.56 | -$134.70 million | ($4.42) | -0.79 |
| Locafy | $4.21 million | 1.78 | -$2.62 million | ($1.87) | -3.13 |
Locafy has lower revenue, but higher earnings than Cardlytics. Locafy is trading at a lower price-to-earnings ratio than Cardlytics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cardlytics and Locafy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cardlytics | -50.21% | -17.96% | -5.97% |
| Locafy | -66.21% | -82.35% | -45.02% |
Risk & Volatility
Cardlytics has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Summary
Cardlytics beats Locafy on 8 of the 12 factors compared between the two stocks.
About Cardlytics
Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
About Locafy
Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.
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