Reviewing System1 (NYSE:SST) & CMG Holdings Group (OTCMKTS:CMGO)

System1 (NYSE:SST) and CMG Holdings Group (OTCMKTS:CMGO) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Earnings & Valuation

This table compares System1 and CMG Holdings Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
System1	$343.92 million	0.13	-$74.67 million	($8.53)	-0.52
CMG Holdings Group	$2.04 million	0.00	-$120,000.00	N/A	N/A

CMG Holdings Group has lower revenue, but higher earnings than System1.

Risk and Volatility

System1 has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, CMG Holdings Group has a beta of -0.27, indicating that its share price is 127% less volatile than the S&P 500.

Insider and Institutional Ownership

87.5% of System1 shares are held by institutional investors. 13.2% of System1 shares are held by insiders. Comparatively, 3.3% of CMG Holdings Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for System1 and CMG Holdings Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
System1	1	0	1	0	2.00
CMG Holdings Group	0	0	0	0	0.00

System1 currently has a consensus price target of $10.00, suggesting a potential upside of 124.47%. Given System1’s stronger consensus rating and higher possible upside, research analysts clearly believe System1 is more favorable than CMG Holdings Group.

Profitability

This table compares System1 and CMG Holdings Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
System1	-22.78%	-109.87%	-15.60%
CMG Holdings Group	N/A	N/A	N/A

Summary

System1 beats CMG Holdings Group on 7 of the 11 factors compared between the two stocks.

About System1

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.

About CMG Holdings Group

CMG Holdings Group, Inc., a marketing communications company, operates organizations in the alternative advertising, digital media, experiential and interactive marketing, and entertainment industries in the United States. It operates through XA The Experiential Agency, Inc.; and CMG Holding Group segments. The company is involved in the production and promotion, event design, sponsorship evaluation, negotiation and activation, talent buying, show production, stage and set design, and data analysis and management activities. It also offers branding and design services, such as graphic, industrial and package designs across traditional and new media, public relations, social media, media development and relations, and interactive marketing platforms to provide its clients with customary private digital media networks for the design and development of individual broadcasting digital media channels, as well as to sell, promote, and enhance their digital media video content through mobile, online, and social mediums. In addition, the company develops, manages, and executes sales promotion programs. It serves clients operating in the marketing communication industry. The company was formerly known as CMG Holdings, Inc. and changed its name to CMG Holdings Group, Inc. in October 2011. CMG Holdings Group, Inc. was founded in 2002 and is based in Chicago, Illinois.