Educational Development (NASDAQ:EDUC – Get Free Report) and TechTarget (NASDAQ:TTGT – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Profitability
This table compares Educational Development and TechTarget’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Educational Development | 9.75% | -18.23% | -12.73% |
| TechTarget | -36.85% | -0.62% | -0.38% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Educational Development and TechTarget, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Educational Development | 0 | 1 | 0 | 0 | 2.00 |
| TechTarget | 1 | 0 | 2 | 0 | 2.33 |
Institutional and Insider Ownership
19.6% of Educational Development shares are owned by institutional investors. Comparatively, 93.5% of TechTarget shares are owned by institutional investors. 11.9% of Educational Development shares are owned by company insiders. Comparatively, 0.9% of TechTarget shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Educational Development and TechTarget”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Educational Development | $22.91 million | 0.48 | $2.33 million | $0.23 | 5.65 |
| TechTarget | $486.79 million | 0.61 | -$1.01 billion | ($2.45) | -1.67 |
Educational Development has higher earnings, but lower revenue than TechTarget. TechTarget is trading at a lower price-to-earnings ratio than Educational Development, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Educational Development has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, TechTarget has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Summary
TechTarget beats Educational Development on 9 of the 14 factors compared between the two stocks.
About Educational Development
Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.
About TechTarget
TechTarget, Inc., together with its subsidiaries, provides marketing and sales services that deliver business impact for business-to-business technology companies in North America and internationally. The company's service enables technology vendors to identify, reach, and influence corporate information technology (IT) decision-makers actively researching specific IT purchases; and customized marketing programs that integrate demand generation, brand advertising techniques, and content curation and creation. It offers business to business services, such as IT Deal Alert, a suite of data, software, and services comprising Priority Engine and Qualified Sales Opportunities to identify and prioritize accounts and individuals actively researching new technology purchases or upgrades; demand solutions provides marketing programs, including white papers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; brand solutions which includes on-network banner advertising and digital sponsorships, off-network banner targeting, and microsites and related formats; custom content creation that delivers market insights and guidance to technology companies and off-the-shelf editorial sponsorship products on topics aligned to customer markets; and BrightTALK platform which allows customers to create, host and promote webinars, virtual events, and video content. In addition, the company operates websites, webinars, and virtual event channels that focus on a specific IT sector, such as storage, security, or networking; and enables registered members to conduct their pre-purchase research by accessing vendor supplied content through its virtual event and webinar channels, and website networks. TechTarget, Inc. was incorporated in 1999 and is headquartered in Newton, Massachusetts.
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