Social Reality (NASDAQ: SRAX) and Millennial Media (NYSE:MM) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Profitability

This table compares Social Reality and Millennial Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Social Reality -12.34% -37.44% -12.15%
Millennial Media -23.47% -26.25% -19.24%

Earnings and Valuation

This table compares Social Reality and Millennial Media’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Social Reality $32.35 million 0.33 -$4.16 million ($0.95) -1.42
Millennial Media N/A N/A N/A N/A N/A

Millennial Media has higher revenue, but lower earnings than Social Reality.

Institutional and Insider Ownership

0.8% of Social Reality shares are owned by institutional investors. 22.3% of Social Reality shares are owned 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.

Analyst Ratings

This is a summary of current ratings for Social Reality and Millennial Media, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Social Reality 0 0 1 0 3.00
Millennial Media 0 0 0 0 N/A

Social Reality presently has a consensus price target of $5.00, indicating a potential upside of 270.37%. Given Social Reality’s higher possible upside, analysts clearly believe Social Reality is more favorable than Millennial Media.

Summary

Social Reality beats Millennial Media on 7 of the 8 factors compared between the two stocks.

About Social Reality

Social Reality, Inc. is an Internet advertising and platform technology company. The Company provides tools to automate the digital advertising market. It is engaged in the sales of digital media advertising campaigns to advertising agencies and brands; sales of media inventory through real-time bidding (RTB) exchanges; sale and licensing of its SRAX Social platform and related media, and creation of custom platforms for buying media on SRAX for various brands. Its technology assists publishers in delivering their media inventory to the RTB exchanges. It provides the SRAX platform to brands and their advertising agencies. SRAX Social is a social media and loyalty platform that allows brands to launch and manage their social media initiatives. SRAX MD is an advertisement targeting and data platform for healthcare brands and medical content publishers. SRAX APP is a platform that allows publishers and content owners to launch native mobile applications through its SRAX platform.

About Millennial Media

Millennial Media, Inc. is an independent mobile advertising marketplace delivering products and services to advertisers and developers. The Company offers advertisers a suite of solutions that allow them to reach and connect with the target audiences across screens, from smartphones, tablets and other mobile devices to PCs. The Company offers developers the ability to maximize the advertising revenue and acquire new users for apps. Its advertiser and developer solutions support all mobile operating systems, including Apple iOS, Android, Windows Phone and BlackBerry. For clients who want a higher degree of customer service, the Company offers its managed media services with dedicated account teams. For its clients who want to interact with it on a more automated basis, the Company offers tools that allow advertisers to buy its ad supply in a programmatic fashion through its ad exchange and developers the opportunity to manage and monetize the ad inventory through its supply side tool.

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