MediaAlpha (NYSE:MAX) versus NerdWallet (NASDAQ:NRDS) Head-To-Head Analysis

MediaAlpha (NYSE:MAX) and NerdWallet (NASDAQ:NRDS) 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 valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Earnings & Valuation

This table compares MediaAlpha and NerdWallet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MediaAlpha	$1.11 billion	0.65	$25.62 million	$1.62	7.26
NerdWallet	$836.60 million	0.80	$48.70 million	$0.89	11.83

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

Profitability

This table compares MediaAlpha and NerdWallet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MediaAlpha	7.94%	-301.42%	28.23%
NerdWallet	7.56%	18.07%	14.41%

Risk and Volatility

MediaAlpha has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Institutional & Insider Ownership

64.4% of MediaAlpha shares are held by institutional investors. Comparatively, 38.8% of NerdWallet shares are held by institutional investors. 14.6% of MediaAlpha shares are held by company insiders. Comparatively, 52.7% of NerdWallet shares are held by company 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.

Analyst Recommendations

This is a breakdown of current recommendations for MediaAlpha and NerdWallet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MediaAlpha	0	4	3	2	2.78
NerdWallet	1	3	4	0	2.38

MediaAlpha currently has a consensus price target of $13.79, suggesting a potential upside of 17.29%. NerdWallet has a consensus price target of $12.83, suggesting a potential upside of 21.87%. Given NerdWallet’s higher probable upside, analysts plainly believe NerdWallet is more favorable than MediaAlpha.

Summary

NerdWallet beats MediaAlpha on 8 of the 15 factors compared between the two stocks.

About MediaAlpha

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.