COMSCORE (NASDAQ: SCOR) and RMG Networks Holding Corporation (NASDAQ:RMGN) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitabiliy, earnings and risk.

Analyst Ratings

This is a summary of current ratings and price targets for COMSCORE and RMG Networks Holding Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
COMSCORE 0 4 1 0 2.20
RMG Networks Holding Corporation 0 0 1 0 3.00

COMSCORE currently has a consensus target price of $33.67, suggesting a potential upside of 12.98%. RMG Networks Holding Corporation has a consensus target price of $1.00, suggesting a potential upside of 75.44%. Given RMG Networks Holding Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe RMG Networks Holding Corporation is more favorable than COMSCORE.

Risk and Volatility

COMSCORE has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, RMG Networks Holding Corporation has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares COMSCORE and RMG Networks Holding Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
COMSCORE 4.49% 4.51% 3.18%
RMG Networks Holding Corporation -12.50% -53.60% -17.83%

Institutional and Insider Ownership

9.6% of RMG Networks Holding Corporation shares are held by institutional investors. 4.9% of COMSCORE shares are held by company insiders. Comparatively, 24.5% of RMG Networks Holding Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares COMSCORE and RMG Networks Holding Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
COMSCORE $368.82 million 3.15 $37.14 million ($0.21) -141.90
RMG Networks Holding Corporation $37.90 million 0.67 -$1.42 million N/A N/A

COMSCORE has higher revenue and earnings than RMG Networks Holding Corporation.

Summary

COMSCORE beats RMG Networks Holding Corporation on 7 of the 11 factors compared between the two stocks.

COMSCORE Company Profile

comScore, Inc. is a cross-platform measurement company. The Company provides independent data, metrics, products and services to clients in the media, advertising and marketing industries. The Company delivers digital media analytics that help content owners and advertisers understand the composition of consumer media audiences, and also helps marketers understand the performance and effectiveness of advertising targeted at these audiences. The Company measures what people do as they navigate the digital world across multiple technology platforms and devices, including smartphones, tablets, televisions and desktop computers. The Company’s technology measures consumer interactions with digital media, including Websites, applications, video programming and advertising. Its solutions include Audience Analytics, Activation, Advertising Analytics and Movies Worldwide. The Company’s Audience Analytics products include MMX, Video Metrix, Mobile Metrix, qSearch and OnDemand Essentials.

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