Head to Head Contrast: Cardlytics (NASDAQ:CDLX) and Wearable Devices (NASDAQ:WLDS)

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

Valuation & Earnings

This table compares Cardlytics and Wearable Devices”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardlytics	$211.16 million	0.14	-$103.49 million	($17.70)	-0.29
Wearable Devices	$650,000.00	9.88	-$8.11 million	N/A	N/A

Wearable Devices has lower revenue, but higher earnings than Cardlytics.

Insider and Institutional Ownership

68.1% of Cardlytics shares are owned by institutional investors. Comparatively, 0.2% of Wearable Devices shares are owned by institutional investors. 5.9% of Cardlytics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cardlytics	-46.03%	-956.56%	-34.57%
Wearable Devices	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cardlytics and Wearable Devices, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardlytics	2	2	0	0	1.50
Wearable Devices	1	0	0	0	1.00

Cardlytics presently has a consensus target price of $10.00, indicating a potential upside of 91.57%. Given Cardlytics’ stronger consensus rating and higher possible upside, research analysts plainly believe Cardlytics is more favorable than Wearable Devices.

Risk and Volatility

Cardlytics has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Wearable Devices has a beta of 3.04, meaning that its stock price is 204% more volatile than the S&P 500.

Summary

Wearable Devices beats Cardlytics on 6 of the 11 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 Wearable Devices

Wearable Devices Ltd. engages in the development of a non-invasive neural input interface for controlling digital devices using subtle touchless finger movements. The company offers Mudra development kits that enable users to control digital devices, including consumer electronics, smart watches, smartphones, AR glasses, VR headsets, televisions, personal computers and laptop computers, drones, robots, and others through finger movements and hand gestures; and SNC sensor module, an operating system (OS) software package and algorithm package to customers. It also provides Mudra Band, a neural input wristband, which allows users to control Apple ecosystem devices, including iPhone, Mac computer, Apple TV, and iPad using subtle touchless finger movements and gestures; and Mudra XR wristband, a wearable controller for smart glasses and spatial computing that supports hands-free interaction. The company serves consumer electronics companies and brands, industrial manufacturing companies, information technology and software solutions providers, software development studios, academia and research universities, and B2C market. Wearable Devices Ltd. was incorporated in 2014 and is headquartered in Yokneam Illit, Israel.