Critical Analysis: Yext (NYSE:YEXT) versus SOS (NYSE:SOS)

Yext (NYSE:YEXT) and SOS (NYSE:SOS) 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 dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares Yext and SOS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$446.58 million	0.81	$37.87 million	$0.06	59.87
SOS	$154.29 million	0.05	-$97.32 million	N/A	N/A

Yext has higher revenue and earnings than SOS.

Profitability

This table compares Yext and SOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yext	8.48%	29.61%	7.59%
SOS	N/A	N/A	N/A

Insider and Institutional Ownership

71.0% of Yext shares are held by institutional investors. Comparatively, 1.9% of SOS shares are held by institutional investors. 5.2% of Yext shares are held by company insiders. Comparatively, 2.7% of SOS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Yext and SOS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	1	3	2	0	2.17
SOS	1	0	0	0	1.00

Yext currently has a consensus price target of $7.50, indicating a potential upside of 108.80%. Given Yext’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Yext is more favorable than SOS.

Risk & Volatility

Yext has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, SOS has a beta of 2.66, meaning that its share price is 166% more volatile than the S&P 500.

Summary

Yext beats SOS on 11 of the 12 factors compared between the two stocks.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

About SOS

SOS Limited provides data mining and analysis services to corporate and individual members in the People's Republic of China. It provides marketing data, technology, and solutions for insurance companies; emergency rescue services; and insurance product and health care information portals. The company operates SOS cloud emergency rescue service software as a service platform that offers basic cloud products, such as medical rescue, auto rescue, financial rescue, and life rescue cards; cooperative cloud systems, including information rescue center, intelligent big data, and intelligent software and hardware; and information cloud systems, such as newsToday and E-commerce Today, 10086 hot-line center, information security services, and marketing-related data. It also focuses on cryptocurrency mining, blockchain-based insurance, and security management businesses. The company serves insurance companies, financial institutions, medical institutions, healthcare providers, and other service providers in the emergency rescue services industry. The company is based in Qingdao, the People's Republic of China.