MarketWise (NASDAQ:MKTW) and Tuya (NYSE:TUYA) Head to Head Contrast

MarketWise (NASDAQ:MKTW) and Tuya (NYSE:TUYA) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for MarketWise and Tuya, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarketWise	0	1	2	0	2.67
Tuya	0	0	2	0	3.00

MarketWise presently has a consensus target price of $3.50, indicating a potential upside of 143.06%. Tuya has a consensus target price of $2.70, indicating a potential upside of 35.68%. Given MarketWise’s higher probable upside, analysts clearly believe MarketWise is more favorable than Tuya.

Profitability

This table compares MarketWise and Tuya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MarketWise	0.46%	-0.74%	0.48%
Tuya	-17.53%	-2.82%	-2.58%

Volatility & Risk

MarketWise has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Tuya has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Insider and Institutional Ownership

23.0% of MarketWise shares are owned by institutional investors. Comparatively, 11.5% of Tuya shares are owned by institutional investors. 28.6% of MarketWise shares are owned by insiders. Comparatively, 2.1% of Tuya shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares MarketWise and Tuya’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarketWise	$448.18 million	1.06	$1.78 million	$0.04	36.01
Tuya	$229.99 million	4.36	-$60.31 million	($0.08)	-24.88

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

Summary

MarketWise beats Tuya on 10 of the 12 factors compared between the two stocks.

About MarketWise

MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.