Marchex (NASDAQ:MCHX) and Sito Mobile (NASDAQ:SITO) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Marchex and Sito Mobile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marchex $85.25 million 1.77 -$2.68 million ($0.06) -58.33
Sito Mobile $39.75 million 0.47 -$17.07 million ($0.68) -1.07

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

Risk & Volatility

Marchex has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Sito Mobile has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Insider & Institutional Ownership

55.9% of Marchex shares are owned by institutional investors. Comparatively, 11.7% of Sito Mobile shares are owned by institutional investors. 18.4% of Marchex shares are owned by company insiders. Comparatively, 3.2% of Sito Mobile shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Marchex and Sito Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marchex -3.66% -1.11% -0.90%
Sito Mobile -45.55% -129.76% -72.94%

Analyst Recommendations

This is a breakdown of current ratings for Marchex and Sito Mobile, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marchex 0 0 2 0 3.00
Sito Mobile 0 1 2 0 2.67

Marchex currently has a consensus target price of $7.00, indicating a potential upside of 100.00%. Sito Mobile has a consensus target price of $3.00, indicating a potential upside of 312.14%. Given Sito Mobile’s higher possible upside, analysts clearly believe Sito Mobile is more favorable than Marchex.

Summary

Marchex beats Sito Mobile on 11 of the 13 factors compared between the two stocks.

About Marchex

Marchex, Inc. operates as a call analytics company that helps businesses connect, drive, measure, and convert callers into customers. Its products include Marchex Call Analytics, an analytics platform for enterprises that depend on inbound phone calls to drive sales, appointments, and reservations; Marchex Speech Analytics that enable actionable insights for enterprise, mid-sized, and small businesses; Text Analytics and Communications, which enable businesses to send and receive text/SMS messages with customers; Call Monitoring; Marchex Omnichannel Analytics Cloud products, such as Marchex Search Analytics, a product for search marketers that drive phone calls from search campaigns, as well as Marchex Display and Video Analytics, a product for marketers that buy digital display advertising; Marchex Site Analytics, a product for marketers that can drive phone calls from Websites; and Marchex Social Analytics, a product for marketers that buy social media advertising. The company also offers Marchex Audience Targeting that leverages call data to automatically build audience segments for display and social media platforms; and Marchex Call Marketplace, a mobile advertising network for businesses that depend on inbound phone calls to drive sales, as well as provides advertisers ad placements across various mobile and online media sources to deliver qualified calls to their businesses. In addition, it provides Local Leads platform, a service advertising solution for small business resellers, such as Yellow Pages providers and vertical marketing service providers to sell call advertising, search marketing, and other lead generation products through their existing sales channels to small business advertisers. Marchex, Inc. was founded in 2003 and is headquartered in Seattle, Washington.

About Sito Mobile

SITO Mobile, Ltd. provides advertisement delivery, measurement and attribution, and consumer insights using its proprietary location-based marketing intelligence platform in the United States and Canada. It offers Ad Placement, which delivers advertisements on behalf of its customers to audiences of existing and prospective consumers in a privacy compliant manner; and advertisements across television, desktop, social media, and digital out of home platforms. The company also provides measurement and attribution products, including Real-time Verified Walk-In, a platform built in-house working in tandem with a data management platform and demand side platform; Location, Audience and Behavior Sciences reports that provide an analysis of a customer's audience, breaking down location, and purchase and demographic data against various control groups for selected targeted audiences in real time; and Purchase Science Reports, which offer transaction data to make marketing campaigns relevant and measurable. In addition, it offers Insights products, such as Consumer Behavior and Location Sciences, which explores the consumer journey and presents strategic knowledge assets and actionable insights for executives and strategic decision makers looking to understand and influence consumer behaviors. The company provides its services to brands, advertising agencies, out-of-home advertisers, media companies, and non-media companies through salesforce and account management teams. The company was formerly known as Single Touch Systems, Inc. and changed its name to SITO Mobile, Ltd. in September 2014. SITO Mobile, Ltd. was incorporated in 2000 and is based in Jersey City, New Jersey.

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