Head to Head Review: Cardlytics (NASDAQ:CDLX) vs. Yext (NYSE:YEXT)

Yext (NYSE:YEXT) and Cardlytics (NASDAQ:CDLX) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Yext has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Cardlytics has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Yext and Cardlytics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yext	5.89%	18.57%	4.74%
Cardlytics	-44.12%	-235.70%	-31.31%

Valuation and Earnings

This table compares Yext and Cardlytics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$420.96 million	2.22	-$27.95 million	($0.01)	-761.50
Cardlytics	$278.30 million	0.24	-$189.30 million	($2.11)	-0.57

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Yext and Cardlytics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	1	2	3	0	2.33
Cardlytics	1	3	0	0	1.75

Yext presently has a consensus price target of $9.44, indicating a potential upside of 23.93%. Cardlytics has a consensus price target of $2.25, indicating a potential upside of 85.95%. Given Cardlytics’ higher possible upside, analysts plainly believe Cardlytics is more favorable than Yext.

Insider & Institutional Ownership

71.0% of Yext shares are held by institutional investors. Comparatively, 68.1% of Cardlytics shares are held by institutional investors. 5.2% of Yext shares are held by company insiders. Comparatively, 4.4% of Cardlytics shares are held by company 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.

Summary

Yext beats Cardlytics on 11 of the 14 factors compared between the two stocks.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

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.