Advantage Solutions (NASDAQ:ADV – Get Free Report) and Taboola.com (NASDAQ:TBLA – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Earnings and Valuation
This table compares Advantage Solutions and Taboola.com”s top-line 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) | -1.37 |
| Taboola.com | $1.91 billion | 0.45 | $42.28 million | $0.40 | 8.50 |
Taboola.com has lower revenue, but higher earnings than Advantage Solutions. Advantage Solutions is trading at a lower price-to-earnings ratio than Taboola.com, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
49.8% of Advantage Solutions shares are held by institutional investors. Comparatively, 42.9% of Taboola.com shares are held by institutional investors. 9.7% of Advantage Solutions shares are held by company insiders. Comparatively, 20.6% of Taboola.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Advantage Solutions and Taboola.com, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Advantage Solutions | 1 | 2 | 1 | 0 | 2.00 |
| Taboola.com | 0 | 2 | 4 | 0 | 2.67 |
Advantage Solutions presently has a consensus target price of $42.00, indicating a potential upside of 44.08%. Taboola.com has a consensus target price of $5.75, indicating a potential upside of 69.12%. Given Taboola.com’s stronger consensus rating and higher possible upside, analysts clearly believe Taboola.com is more favorable than Advantage Solutions.
Volatility & Risk
Advantage Solutions has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.
Profitability
This table compares Advantage Solutions and Taboola.com’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% |
| Taboola.com | 6.05% | 12.15% | 7.22% |
Summary
Taboola.com 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 Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.
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