Izea Worldwide (NASDAQ:IZEA – Get Free Report) and Educational Development (NASDAQ:EDUC – Get Free Report) are both small-cap communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.
Risk & Volatility
Izea Worldwide has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Educational Development has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Izea Worldwide and Educational Development, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Izea Worldwide | 2 | 0 | 0 | 0 | 1.00 |
| Educational Development | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Izea Worldwide | $31.24 million | 1.61 | $40,000.00 | ($0.14) | -20.64 |
| Educational Development | $22.91 million | 0.49 | $2.33 million | $0.23 | 5.70 |
Educational Development has lower revenue, but higher earnings than Izea Worldwide. Izea Worldwide is trading at a lower price-to-earnings ratio than Educational Development, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
15.6% of Izea Worldwide shares are owned by institutional investors. Comparatively, 19.6% of Educational Development shares are owned by institutional investors. 6.5% of Izea Worldwide shares are owned by company insiders. Comparatively, 11.9% of Educational Development shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Izea Worldwide and Educational Development’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Izea Worldwide | -9.36% | -5.10% | -4.41% |
| Educational Development | 9.75% | -18.23% | -12.73% |
Summary
Educational Development beats Izea Worldwide on 6 of the 11 factors compared between the two stocks.
About Izea Worldwide
IZEA Worldwide, Inc., together with its subsidiaries, offers software and professional services to connect brands and content creators in North America, the Asia Pacific, and internationally. The company offers IZEA Flex, its flagship platform for managing enterprise influencer marketing; and comprehensive expense management service to track and manage off-platform expenses related to influencer marketing campaigns. It also operates The Creator Marketplace on IZEA.com that provides creators tools to present their work to marketers. In addition, the company provides management of content workflow, creator search and targeting, bidding, analytics, and payment processing services. It primarily sells influencer marketing and custom content campaigns through client development team and platforms. The company was formerly known as IZEA, Inc. and changed its name to IZEA Worldwide, Inc. in August 2018. IZEA Worldwide, Inc. was founded in 2006 and is headquartered in Orlando, Florida.
About Educational Development
Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.
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