Contrasting Mastermind (OTCMKTS:MMND) & System1 (NYSE:SST)

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

Volatility & Risk

Mastermind has a beta of -0.42, meaning that its share price is 142% less volatile than the S&P 500. Comparatively, System1 has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mastermind and System1″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mastermind	$4.71 million	0.00	-$345,100.00	($0.01)	-0.03
System1	$266.13 million	0.11	-$65.35 million	($12.00)	-0.25

Mastermind has higher earnings, but lower revenue than System1. System1 is trading at a lower price-to-earnings ratio than Mastermind, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Mastermind and System1, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mastermind	0	0	0	0	0.00
System1	1	0	1	0	2.00

System1 has a consensus price target of $10.00, suggesting a potential upside of 239.56%. Given System1’s stronger consensus rating and higher probable upside, analysts plainly believe System1 is more favorable than Mastermind.

Profitability

This table compares Mastermind and System1’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mastermind	N/A	N/A	N/A
System1	-42.18%	-439.90%	-18.89%

Summary

System1 beats Mastermind on 8 of the 14 factors compared between the two stocks.

About Mastermind

Mastermind, Inc., an involvement marketing service agency, designs, creates, and develops branding and marketing campaigns for corporate clients. Its programs cover various forms, such as creating and managing digital content, designing campaign Websites/landing pages, social media and viral campaigns, mobile marketing initiatives, and brand communications. The company customers comprise of sports and entertainment, oil and gas, automotive, retail, restaurant, B2B, financial services, hotel and hospitality, consumer packaged goods, healthcare and pharmaceuticals, technology, and agricultural chemicals. Mastermind, Inc. was founded in 2012 and is based in Atlanta, Georgia. Mastermind, Inc. is a subsidiary of Mastermind Marketing, Inc.

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.