Social Reality (NASDAQ: SRAX) and Criteo (NASDAQ:CRTO) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Analyst Ratings

This is a summary of current recommendations for Social Reality and Criteo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Social Reality 0 0 1 0 3.00
Criteo 0 5 8 0 2.62

Social Reality presently has a consensus target price of $5.00, indicating a potential upside of 284.70%. Criteo has a consensus target price of $56.71, indicating a potential upside of 32.22%. Given Social Reality’s stronger consensus rating and higher possible upside, research analysts clearly believe Social Reality is more favorable than Criteo.

Risk & Volatility

Social Reality has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Criteo has a beta of 2.72, meaning that its share price is 172% more volatile than the S&P 500.

Insider and Institutional Ownership

0.8% of Social Reality shares are held by institutional investors. Comparatively, 84.4% of Criteo shares are held by institutional investors. 22.3% of Social Reality shares are held by insiders. Comparatively, 5.6% of Criteo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Social Reality and Criteo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Social Reality -20.04% -93.45% -29.69%
Criteo 3.48% 13.94% 7.74%

Valuation and Earnings

This table compares Social Reality and Criteo’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Social Reality $32.35 million 0.32 -$4.16 million ($0.95) -1.37
Criteo $2.05 billion 1.29 $186.34 million $1.08 39.71

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

Summary

Criteo beats Social Reality on 10 of the 13 factors compared between the two stocks.

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.

Criteo Company Profile

Criteo SA is a France-based company specializing in digital performance marketing. Its solution consists of the Criteo Engine, the Company’s data assets, access to inventory, and its advertiser and publisher platforms. The Criteo Engine consists of various machine learning algorithms, such as prediction, recommendation, bidding and creative algorithms and the global hardware and software infrastructure. The Criteo Engine delivers advertisements through multiple marketing channels and formats, including display advertising banners, native advertising banners and marketing messages delivered to opt-in e-mail addresses. Advertisements are delivered on all devices and screens, including Web browsers on desktops and laptops, mobile Web browsers on smartphones and tablets, as well as mobile applications. It operates in approximately 90 countries through a network of over 30 international offices located in Europe, the Americas and the Asia-Pacific region. It operates through HookLogic Inc.

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