Sizmek (NASDAQ: SZMK) and Marchex (NASDAQ:MCHX) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Earnings and Valuation

This table compares Sizmek and Marchex’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sizmek N/A N/A N/A ($4.29) -0.91
Marchex $105.54 million 1.13 -$12.35 million ($0.39) -7.99

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

Profitability

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

Net Margins Return on Equity Return on Assets
Sizmek -2.13% -3.56% -2.52%
Marchex -15.53% -10.65% -9.44%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sizmek and Marchex, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sizmek 0 0 0 0 N/A
Marchex 0 1 0 0 2.00

Marchex has a consensus price target of $3.00, suggesting a potential downside of 3.69%. Given Marchex’s higher possible upside, analysts clearly believe Marchex is more favorable than Sizmek.

Institutional & Insider Ownership

41.6% of Sizmek shares are held by institutional investors. Comparatively, 49.7% of Marchex shares are held by institutional investors. 15.0% of Sizmek shares are held by company insiders. Comparatively, 27.4% of Marchex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Sizmek has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Marchex has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Summary

Marchex beats Sizmek on 5 of the 9 factors compared between the two stocks.

About Sizmek

Sizmek Inc. (Sizmek) is an open ad management company. The Company operates an independent online advertisement campaign management and distribution platform. The Company helps advertisers, agencies and publishers engage with consumers across multiple online media channels (mobile, display, video and social). It connects approximately 19,000 advertisers and 3,700 agencies to audiences in over 60 countries. Its online campaign management platform, Sizmek MDX, helps advertisers, agencies and publishers in managing their advertising budgets across multiple online media channels and formats, such as desktop, mobile, rich media, social media, in-stream video, interactive video, display and search. The Sizmek MDX platform provides its customers with an end-to-end solution in planning, creative, delivery, measurement and optimization of online media campaigns. Its solutions are delivered through a technology platform that allows delivery of global online media advertising campaigns.

About Marchex

Marchex, Inc. is a mobile advertising analytics company. The Company offers products and services for enterprises that depend on consumer phone calls to drive sales. Its media analytics products can provide actionable intelligence on media channels advertisers use to acquire customers over the phone. Its Marchex Omnichannel Analytics Cloud helps marketers connect customer conversions driven from paid media channels, including search, display and video, social and sites, to phone calls made to a business. Its product offerings include Marchex Call Analytics, Marchex Search Analytics, Marchex Display and Video Analytics, Marchex Social Analytics, Marchex Call Marketplace and Local Leads. Its Local Leads platform is a white-labeled, full service advertising solution for small business resellers, such as Yellow Pages providers and vertical marketing service providers, to sell call advertising, search marketing and other lead generation products.

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