Cardlytics (NASDAQ:CDLX – Get Free Report) and News (NASDAQ:NWS – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Profitability
This table compares Cardlytics and News’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cardlytics | -55.92% | -956.56% | -38.39% |
| News | 6.35% | 7.09% | 4.27% |
Valuation and Earnings
This table compares Cardlytics and News”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cardlytics | $233.27 million | 0.10 | -$103.49 million | ($18.48) | -0.22 |
| News | $9.03 billion | 2.09 | $573.00 million | $1.03 | 33.83 |
News has higher revenue and earnings than Cardlytics. Cardlytics is trading at a lower price-to-earnings ratio than News, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Cardlytics has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, News has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
Insider and Institutional Ownership
68.1% of Cardlytics shares are held by institutional investors. Comparatively, 14.6% of News shares are held by institutional investors. 5.9% of Cardlytics shares are held by company insiders. Comparatively, 11.1% of News 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 Ratings
This is a breakdown of recent ratings and target prices for Cardlytics and News, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cardlytics | 2 | 1 | 0 | 0 | 1.33 |
| News | 0 | 1 | 1 | 0 | 2.50 |
Cardlytics currently has a consensus target price of $10.00, suggesting a potential upside of 148.76%. Given Cardlytics’ higher probable upside, research analysts clearly believe Cardlytics is more favorable than News.
Summary
News beats Cardlytics on 12 of the 14 factors compared between the two stocks.
About Cardlytics
Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
About News
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children’s, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
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