Magnite (NASDAQ:MGNI) vs. Advantage Solutions (NASDAQ:ADV) Financial Contrast

Advantage Solutions (NASDAQ:ADV) and Magnite (NASDAQ:MGNI) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Advantage Solutions has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500. Comparatively, Magnite has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500.

Profitability

This table compares Advantage Solutions and Magnite’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Solutions	-7.65%	-48.15%	-9.47%
Magnite	22.49%	9.33%	2.77%

Valuation & Earnings

This table compares Advantage Solutions and Magnite”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Solutions	$3.54 billion	0.11	-$227.74 million	($21.34)	-1.38
Magnite	$742.04 million	4.96	$144.61 million	$1.09	23.55

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

Analyst Recommendations

This is a summary of recent recommendations for Advantage Solutions and Magnite, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Solutions	2	1	1	0	1.75
Magnite	0	2	10	0	2.83

Advantage Solutions currently has a consensus price target of $42.00, indicating a potential upside of 42.13%. Magnite has a consensus price target of $29.36, indicating a potential upside of 14.39%. Given Advantage Solutions’ higher possible upside, research analysts plainly believe Advantage Solutions is more favorable than Magnite.

Institutional and Insider Ownership

49.8% of Advantage Solutions shares are owned by institutional investors. Comparatively, 73.4% of Magnite shares are owned by institutional investors. 9.7% of Advantage Solutions shares are owned by company insiders. Comparatively, 3.2% of Magnite shares are owned 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.

Summary

Magnite beats Advantage Solutions on 11 of the 14 factors compared between the two stocks.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.