QuinStreet (NASDAQ:QNST) and EverQuote (NASDAQ:EVER) Financial Analysis

EverQuote (NASDAQ:EVER) and QuinStreet (NASDAQ:QNST) are both small-cap communication services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Profitability

This table compares EverQuote and QuinStreet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EverQuote	15.16%	50.29%	36.69%
QuinStreet	6.28%	12.73%	6.33%

Insider and Institutional Ownership

91.5% of EverQuote shares are held by institutional investors. Comparatively, 97.8% of QuinStreet shares are held by institutional investors. 23.7% of EverQuote shares are held by company insiders. Comparatively, 3.5% of QuinStreet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

EverQuote has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, QuinStreet has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Valuation & Earnings

This table compares EverQuote and QuinStreet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EverQuote	$692.52 million	0.94	$99.31 million	$3.08	5.86
QuinStreet	$1.29 billion	0.64	$81.24 million	$1.41	10.21

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for EverQuote and QuinStreet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EverQuote	1	1	6	0	2.62
QuinStreet	0	1	4	1	3.00

EverQuote currently has a consensus price target of $28.17, suggesting a potential upside of 55.96%. QuinStreet has a consensus price target of $23.50, suggesting a potential upside of 63.19%. Given QuinStreet’s stronger consensus rating and higher possible upside, analysts clearly believe QuinStreet is more favorable than EverQuote.

Summary

EverQuote beats QuinStreet on 8 of the 15 factors compared between the two stocks.

About EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.

About QuinStreet

QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. The company offers online marketing services, such as qualified clicks, leads, calls, applications, and customers through its websites or third-party publishers. It serves financial and home services industries. The company was incorporated in 1999 and is headquartered in Foster City, California.