Contrasting Mogo (NASDAQ:MOGO) & Yext (NYSE:YEXT)

Mogo (NASDAQ:MOGO) and Yext (NYSE:YEXT) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares Mogo and Yext’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mogo	11.41%	7.78%	3.34%
Yext	5.89%	18.57%	4.74%

Valuation and Earnings

This table compares Mogo and Yext”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mogo	$51.97 million	0.51	-$9.98 million	$0.23	4.80
Yext	$420.96 million	2.39	-$27.95 million	($0.01)	-820.00

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

Risk and Volatility

Mogo has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500. Comparatively, Yext has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Mogo and Yext, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mogo	1	1	2	0	2.25
Yext	0	3	3	0	2.50

Mogo currently has a consensus target price of $4.00, suggesting a potential upside of 261.99%. Yext has a consensus target price of $9.44, suggesting a potential upside of 15.09%. Given Mogo’s higher possible upside, research analysts plainly believe Mogo is more favorable than Yext.

Insider and Institutional Ownership

14.8% of Mogo shares are held by institutional investors. Comparatively, 71.0% of Yext shares are held by institutional investors. 12.3% of Mogo shares are held by insiders. Comparatively, 5.2% of Yext shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

About Mogo

Mogo Inc. operates as a digital finance company in Canada, Europe, and internationally. The company's digital solutions help build wealth and achieve financial freedom. It provides MogoTrade, a stock trading app; Moka; and MogoMoney that provides online personal loans. The company also offers digital loans and mortgages; and operates a digital payments platform that powers next-generation card programs for both global corporations and fintech companies in Europe and Canada. Mogo Inc. is headquartered in Vancouver, Canada.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.