Financial Analysis: Cardlytics (CDLX) & Its Rivals

Cardlytics (NASDAQ:CDLX) is one of 257 publicly-traded companies in the “Media” industry, but how does it weigh in compared to its rivals? We will compare Cardlytics to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, risk, profitability, dividends and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Cardlytics and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardlytics	2	2	0	0	1.50
Cardlytics Competitors	2340	6935	10778	490	2.46

Cardlytics currently has a consensus target price of $6.00, suggesting a potential upside of 263.64%. As a group, “Media” companies have a potential upside of 29.09%. Given Cardlytics’ higher possible upside, equities research analysts clearly believe Cardlytics is more favorable than its rivals.

Valuation and Earnings

This table compares Cardlytics and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cardlytics	$233.27 million	-$103.49 million	-0.26
Cardlytics Competitors	$2.97 billion	$35.12 million	-1.85

Cardlytics’ rivals have higher revenue and earnings than Cardlytics. Cardlytics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

68.1% of Cardlytics shares are held by institutional investors. Comparatively, 38.1% of shares of all “Media” companies are held by institutional investors. 5.9% of Cardlytics shares are held by company insiders. Comparatively, 17.5% of shares of all “Media” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Cardlytics has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Cardlytics’ rivals have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Profitability

This table compares Cardlytics and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cardlytics	-22.82%	-956.56%	-14.53%
Cardlytics Competitors	-19.17%	-48.95%	-4.95%

Summary

Cardlytics rivals beat Cardlytics on 10 of the 13 factors compared.

Cardlytics Company Profile

Cardlytics, Inc. is a financial technology and advertising company that operates a marketing platform through banks and other financial institutions. Its technology connects consumers with targeted merchant offers based on transaction data, while providing advertisers with a way to reach customers through digital banking applications and other financial channels. The company’s platform supports merchant-funded rewards, cash-back promotions and purchase-based advertising. Participating consumers can receive offers from retailers, restaurants, travel providers and other businesses, while advertisers can use Cardlytics’ data and measurement tools to target audiences and evaluate whether campaigns lead to purchases.