KLDiscovery (OTCMKTS:KLDI – Get Free Report) and Match Group (NASDAQ:MTCH – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Risk and Volatility
KLDiscovery has a beta of -0.64, suggesting that its stock price is 164% less volatile than the S&P 500. Comparatively, Match Group has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Valuation & Earnings
This table compares KLDiscovery and Match Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KLDiscovery | $345.80 million | 0.00 | -$34.81 million | ($1.56) | -0.01 |
| Match Group | $3.45 billion | 2.22 | $551.28 million | $2.02 | 15.18 |
Match Group has higher revenue and earnings than KLDiscovery. KLDiscovery is trading at a lower price-to-earnings ratio than Match Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for KLDiscovery and Match Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KLDiscovery | 0 | 0 | 0 | 0 | 0.00 |
| Match Group | 1 | 14 | 9 | 0 | 2.33 |
Match Group has a consensus price target of $35.91, suggesting a potential upside of 17.14%. Given Match Group’s stronger consensus rating and higher probable upside, analysts clearly believe Match Group is more favorable than KLDiscovery.
Insider and Institutional Ownership
20.4% of KLDiscovery shares are owned by institutional investors. Comparatively, 94.1% of Match Group shares are owned by institutional investors. 31.6% of KLDiscovery shares are owned by insiders. Comparatively, 0.6% of Match Group shares are owned by 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.
Profitability
This table compares KLDiscovery and Match Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KLDiscovery | -20.91% | N/A | -9.45% |
| Match Group | 15.84% | -574.22% | 12.68% |
Summary
Match Group beats KLDiscovery on 12 of the 14 factors compared between the two stocks.
About KLDiscovery
KLDiscovery Inc. provides eDiscovery, information governance, and data recovery solutions to corporations, law firms, insurance companies, and individuals worldwide. The company offers Nebula, an end-to-end eDiscovery solution that facilitates smarter ways to cull, process, review, and manage documents in an intuitive interface; Client Portal for consolidated visualizations and reporting for portfolio intelligence; KLD Processing, a proprietary processing application; ReadySuite to perform extensive QC on a production, normalize inbound submissions, or spot check the work of a colleague or supplier; Relativity for relativity enhancements and state-of-the-art HIVE infrastructure; Nebula Processing to process data with a higher degree of quality; and Nebula AI, a technology assisted review tool combined with a deep bench of experts, as well as managed services, remote document review, and managed document review services. It also provides computer forensics, ransomware data recovery, remote collection manager, data recovery, and data collection services. In addition, the company offers Nebula Archive, an advanced archiving solution for modern enterprise data management needs at scale; Nebula Intelligent Archive, a digital communications compliance platform with machine learning and analytics; and Office 365 Migration and Management, as well as information governance and advisory services. Further, it provides Ontrack EasyRecovery that allows clients to perform precise file recovery of data lost through deletion, reformatting, and various other data loss scenarios; Ontrack PowerControls, a granular restore software product; email extraction, tape solutions, and data destruction solutions; and professional services. KLDiscovery Inc. was founded in 1985 and is headquartered in Eden Prairie, Minnesota.
About Match Group
Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users' likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, Texas.
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