Reviewing Sizmek (SZMK) and Social Reality (SRAX)

Sizmek (NASDAQ: SZMK) and Social Reality (NASDAQ:SRAX) are both small-cap advertising & marketing – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sizmek and Social Reality, as provided by MarketBeat.com.

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

Social Reality has a consensus price target of $5.00, suggesting a potential upside of 55.28%. Given Social Reality’s higher possible upside, analysts plainly believe Social Reality is more favorable than Sizmek.

Profitability

This table compares Sizmek and Social Reality’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%
Social Reality -28.84% -77.19% -25.15%

Insider and Institutional Ownership

41.6% of Sizmek shares are owned by institutional investors. Comparatively, 0.7% of Social Reality shares are owned by institutional investors. 15.0% of Sizmek shares are owned by insiders. Comparatively, 22.3% of Social Reality shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sizmek N/A N/A N/A ($4.38) -0.89
Social Reality $35.76 million 0.78 -$4.24 million ($1.05) -3.07

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

Summary

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

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.

Social Reality Company Profile

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.

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