Financial Review: CMG Holdings Group (OTCMKTS:CMGO) vs. TechTarget (NASDAQ:TTGT)

CMG Holdings Group (OTCMKTS:CMGO) and TechTarget (NASDAQ:TTGT) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Risk and Volatility

CMG Holdings Group has a beta of -0.2, indicating that its stock price is 120% less volatile than the S&P 500. Comparatively, TechTarget has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Institutional & Insider Ownership

93.5% of TechTarget shares are owned by institutional investors. 3.3% of CMG Holdings Group shares are owned by insiders. Comparatively, 0.9% of TechTarget shares are owned by 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 recent recommendations for CMG Holdings Group and TechTarget, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CMG Holdings Group	0	0	0	0	0.00
TechTarget	2	1	3	0	2.17

TechTarget has a consensus price target of $11.25, indicating a potential upside of 114.69%. Given TechTarget’s stronger consensus rating and higher probable upside, analysts clearly believe TechTarget is more favorable than CMG Holdings Group.

Earnings & Valuation

This table compares CMG Holdings Group and TechTarget”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CMG Holdings Group	$2.04 million	0.00	-$120,000.00	N/A	N/A
TechTarget	$284.90 million	1.33	-$116.86 million	($1.73)	-3.03

CMG Holdings Group has higher earnings, but lower revenue than TechTarget.

Profitability

This table compares CMG Holdings Group and TechTarget’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CMG Holdings Group	N/A	N/A	N/A
TechTarget	-232.59%	-16.76%	-11.15%

Summary

TechTarget beats CMG Holdings Group on 6 of the 11 factors compared between the two stocks.

About CMG Holdings Group

CMG Holdings Group, Inc., a marketing communications company, operates organizations in the alternative advertising, digital media, experiential and interactive marketing, and entertainment industries in the United States. It operates through XA The Experiential Agency, Inc.; and CMG Holding Group segments. The company is involved in the production and promotion, event design, sponsorship evaluation, negotiation and activation, talent buying, show production, stage and set design, and data analysis and management activities. It also offers branding and design services, such as graphic, industrial and package designs across traditional and new media, public relations, social media, media development and relations, and interactive marketing platforms to provide its clients with customary private digital media networks for the design and development of individual broadcasting digital media channels, as well as to sell, promote, and enhance their digital media video content through mobile, online, and social mediums. In addition, the company develops, manages, and executes sales promotion programs. It serves clients operating in the marketing communication industry. The company was formerly known as CMG Holdings, Inc. and changed its name to CMG Holdings Group, Inc. in October 2011. CMG Holdings Group, Inc. was founded in 2002 and is based in Chicago, Illinois.

About TechTarget

TechTarget, Inc., together with its subsidiaries, provides marketing and sales services that deliver business impact for business-to-business technology companies in North America and internationally. The company's service enables technology vendors to identify, reach, and influence corporate information technology (IT) decision-makers actively researching specific IT purchases; and customized marketing programs that integrate demand generation, brand advertising techniques, and content curation and creation. It offers business to business services, such as IT Deal Alert, a suite of data, software, and services comprising Priority Engine and Qualified Sales Opportunities to identify and prioritize accounts and individuals actively researching new technology purchases or upgrades; demand solutions provides marketing programs, including white papers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; brand solutions which includes on-network banner advertising and digital sponsorships, off-network banner targeting, and microsites and related formats; custom content creation that delivers market insights and guidance to technology companies and off-the-shelf editorial sponsorship products on topics aligned to customer markets; and BrightTALK platform which allows customers to create, host and promote webinars, virtual events, and video content. In addition, the company operates websites, webinars, and virtual event channels that focus on a specific IT sector, such as storage, security, or networking; and enables registered members to conduct their pre-purchase research by accessing vendor supplied content through its virtual event and webinar channels, and website networks. TechTarget, Inc. was incorporated in 1999 and is headquartered in Newton, Massachusetts.