Marketo (NASDAQ: MKTO) and SeaChange International (NASDAQ:SEAC) are both application software companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
Institutional & Insider Ownership
73.0% of SeaChange International shares are held by institutional investors. 2.9% of SeaChange International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current ratings for Marketo and SeaChange International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SeaChange International has a consensus price target of $4.25, suggesting a potential upside of 18.38%. Given SeaChange International’s higher possible upside, analysts clearly believe SeaChange International is more favorable than Marketo.
This table compares Marketo and SeaChange International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Marketo and SeaChange International’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SeaChange International||$83.79 million||1.51||-$71.24 million||($0.98)||-3.63|
Marketo has higher earnings, but lower revenue than SeaChange International. Marketo is trading at a lower price-to-earnings ratio than SeaChange International, indicating that it is currently the more affordable of the two stocks.
SeaChange International beats Marketo on 9 of the 10 factors compared between the two stocks.
Marketo Company Profile
Marketo, Inc. is a United States-based provider of a cloud-based Engagement Marketing software platform, which enables organizations to involve in engagement marketing. The Company’s platform offers a range applications across various categories, including Marketing Automation, which helps to organize personalized multi-channel marketing campaigns and workflows; Email Marketing, which provides the ability to tap the insights captured in the Audience Hub to send e-mail messages; Mobile Engagement, which engages customers on their mobile devices; Digital Ads, which allows marketers to focus on behavioral data captured in the Audience Hub for personalized digital advertisements; Web Personalization, which helps in personalizing experiences to engage people; Marketing Analytics; Predictive Content, which discovers Website assets, such as e-books and case studies; Marketing Calendar, and Sales Insight. It offers solutions, such as Lead Management solution and Consumer Marketing solution.
SeaChange International Company Profile
SeaChange International, Inc. (SeaChange) is engaged in the delivery of multiscreen video. The Company’s products and services facilitate the aggregation, licensing, management and distribution of video and advertising content for cable television system operators, telecommunications companies, satellite operators and media companies. SeaChange sells its software products and services across the world, to television service providers, including cable television system operators, telecommunications companies, satellite operators and media companies. Its systems enable service providers to offer other interactive television services that allow subscribers to receive personalized services and interact with their video devices. Its business consists of three product areas: multiscreen video backoffice, advertising and video gateway software solutions. It also offers SeaChange Infusion Advanced Advertising Platform, Adrenalin, SeaChange Infusion Advanced Advertising Platform and Nucleus.
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