Critical Comparison: MarketWise (NASDAQ:MKTW) and LiveRamp (NYSE:RAMP)

MarketWise (NASDAQ:MKTWGet Free Report) and LiveRamp (NYSE:RAMPGet Free Report) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Profitability

This table compares MarketWise and LiveRamp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MarketWise 1.71% -2.54% 2.58%
LiveRamp 8.64% 6.40% 4.87%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MarketWise 1 0 1 0 2.00
LiveRamp 0 4 3 0 2.43

MarketWise currently has a consensus target price of $20.00, indicating a potential upside of 18.91%. LiveRamp has a consensus target price of $39.00, indicating a potential upside of 33.30%. Given LiveRamp’s stronger consensus rating and higher probable upside, analysts clearly believe LiveRamp is more favorable than MarketWise.

Institutional and Insider Ownership

23.0% of MarketWise shares are held by institutional investors. Comparatively, 93.8% of LiveRamp shares are held by institutional investors. 29.3% of MarketWise shares are held by insiders. Comparatively, 3.3% of LiveRamp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MarketWise $328.12 million 0.82 $5.62 million $2.29 7.34
LiveRamp $745.58 million 2.48 -$810,000.00 $1.06 27.60

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

Volatility & Risk

MarketWise has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, LiveRamp has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Summary

LiveRamp beats MarketWise on 11 of the 14 factors compared between the two stocks.

About MarketWise

(Get Free Report)

MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.

About LiveRamp

(Get Free Report)

LiveRamp Holdings, Inc., a technology company, operates a data collaboration platform in the United States, Europe, the Asia-Pacific, and internationally. The company operates LiveRamp Data Collaboration platform enables an organization to unify customer and prospect data to build a single view of the customer in a way that protects consumer privacy. Its platform supports various people-based marketing solutions, including data collaboration, activation, measurement and analytics, identity, and data marketplace. The company sells its solutions to enterprise marketers, agencies, marketing technology providers, publishers, and data providers in various industry verticals, such as financial, insurance and investment services, retail, automotive, telecommunications, high tech, consumer packaged goods, healthcare, travel, entertainment, and non-profit. The company was formerly known as Acxiom Holdings, Inc. and changed its name to LiveRamp Holdings, Inc. in October 2018. The company was incorporated in 2018 and is headquartered in San Francisco, California.

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