Reviewing CyberAgent (OTCMKTS:CYAGF) and Marchex (NASDAQ:MCHX)

CyberAgent (OTCMKTS:CYAGF) and Marchex (NASDAQ:MCHX) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares CyberAgent and Marchex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CyberAgent	$5.35 billion	1.19	$108.86 million	$0.30	41.83
Marchex	$48.12 million	1.76	-$4.95 million	($0.11)	-17.64

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for CyberAgent and Marchex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CyberAgent	0	1	0	0	2.00
Marchex	0	0	0	0	0.00

Profitability

This table compares CyberAgent and Marchex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CyberAgent	2.93%	12.53%	6.15%
Marchex	-9.76%	-12.76%	-9.78%

Institutional and Insider Ownership

73.5% of Marchex shares are held by institutional investors. 21.7% of Marchex shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

CyberAgent has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Marchex has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500.

Summary

CyberAgent beats Marchex on 8 of the 12 factors compared between the two stocks.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.

About Marchex

Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.