Autobytel (NASDAQ: ABTL) and Sizmek (NASDAQ:SZMK) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Valuation and Earnings

This table compares Autobytel and Sizmek’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Autobytel $156.22 million 0.57 $14.97 million $0.37 18.62
Sizmek N/A N/A N/A ($4.29) -0.91

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Autobytel and Sizmek, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autobytel 0 1 1 0 2.50
Sizmek 0 0 0 0 N/A

Autobytel presently has a consensus price target of $20.00, suggesting a potential upside of 190.28%. Given Autobytel’s higher possible upside, equities research analysts clearly believe Autobytel is more favorable than Sizmek.

Institutional & Insider Ownership

58.6% of Autobytel shares are held by institutional investors. Comparatively, 41.6% of Sizmek shares are held by institutional investors. 12.8% of Autobytel shares are held by insiders. Comparatively, 15.0% of Sizmek shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Autobytel has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Sizmek has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Autobytel 3.15% 10.96% 8.20%
Sizmek -2.13% -3.56% -2.52%

Summary

Autobytel beats Sizmek on 8 of the 10 factors compared between the two stocks.

Autobytel Company Profile

Autobytel Inc. is an automotive marketing services company that assists automotive retail dealers and automotive manufacturers market and sell new and used vehicles to consumers through the programs for online lead referrals, dealer marketing products and services, and online advertising programs and mobile products. The Company operates through providing automotive marketing services segment. Its consumer-facing automotive Websites, including Website Autobytel.com, provide consumers with information and tools to aid them with the automotive purchase decisions and ability to submit inquiries requesting dealers to contact the consumers regarding purchasing or leasing vehicles. Its AutoWeb pay-per-click advertising marketplace program uses technology to refer consumer traffic to dealers and manufacturer Websites. For consumers who may not be able to secure loans through conventional lending sources, the Websites provide these consumers the ability to submit inquiries requesting dealers.

Sizmek Company Profile

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.

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