Financial Analysis: KE (NYSE:BEKE) versus Marchex (NASDAQ:MCHX)

KE (NYSE:BEKEGet Free Report) and Marchex (NASDAQ:MCHXGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Volatility & Risk

KE has a beta of -0.36, meaning that its stock price is 136% less volatile than the S&P 500. Comparatively, Marchex has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for KE and Marchex, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KE 0 1 6 0 2.86
Marchex 1 1 0 0 1.50

KE currently has a consensus price target of $23.07, suggesting a potential upside of 33.50%. Given KE’s stronger consensus rating and higher possible upside, research analysts plainly believe KE is more favorable than Marchex.

Valuation & Earnings

This table compares KE and Marchex”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KE $13.52 billion 1.43 $428.13 million $0.42 41.14
Marchex $45.42 million 1.60 -$5.24 million ($0.11) -14.91

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

Institutional and Insider Ownership

39.3% of KE shares are held by institutional investors. Comparatively, 73.5% of Marchex shares are held by institutional investors. 6.8% of KE shares are held by company insiders. Comparatively, 23.5% of Marchex shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares KE and Marchex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KE 3.77% 5.47% 3.10%
Marchex -11.15% -14.61% -11.13%

Summary

KE beats Marchex on 10 of the 14 factors compared between the two stocks.

About KE

(Get Free Report)

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

About Marchex

(Get Free Report)

Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.

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