Critical Comparison: Thumzup Media (NASDAQ:TZUP) and Stagwell (NASDAQ:STGW)

Thumzup Media (NASDAQ:TZUP) and Stagwell (NASDAQ:STGW) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Institutional & Insider Ownership

35.6% of Stagwell shares are owned by institutional investors. 43.5% of Thumzup Media shares are owned by company insiders. Comparatively, 3.8% of Stagwell shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Thumzup Media and Stagwell’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thumzup Media	N/A	-270.42%	-228.96%
Stagwell	-0.06%	14.54%	2.79%

Analyst Recommendations

This is a summary of current ratings and price targets for Thumzup Media and Stagwell, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thumzup Media	1	0	0	0	1.00
Stagwell	1	3	3	0	2.29

Stagwell has a consensus price target of $7.97, indicating a potential upside of 66.60%. Given Stagwell’s stronger consensus rating and higher probable upside, analysts plainly believe Stagwell is more favorable than Thumzup Media.

Valuation & Earnings

This table compares Thumzup Media and Stagwell”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thumzup Media	N/A	N/A	-$4.00 million	($0.73)	-5.58
Stagwell	$2.86 billion	0.43	$2.26 million	N/A	N/A

Stagwell has higher revenue and earnings than Thumzup Media.

Summary

Stagwell beats Thumzup Media on 9 of the 11 factors compared between the two stocks.

About Thumzup Media

Thumzup Media Corporation is a provider of social media branding and marketing solutions which allow businesses and brands to pay customers and fans cash through Venmo and PayPal for their posts on social media. Thumzup Media Corporation is based in Los Angeles, CA.

About Stagwell

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.