Cardlytics (NASDAQ:CDLX) and Model N (NYSE:MODN) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares Cardlytics and Model N’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardlytics $130.37 million 3.17 -$19.64 million ($8.02) -2.54
Model N $131.17 million 3.61 -$39.54 million ($0.83) -18.24

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

Profitability

This table compares Cardlytics and Model N’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardlytics N/A N/A N/A
Model N -21.89% -61.62% -14.54%

Insider & Institutional Ownership

49.7% of Cardlytics shares are held by institutional investors. Comparatively, 68.7% of Model N shares are held by institutional investors. 18.9% of Model N shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Cardlytics and Model N, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardlytics 0 1 5 0 2.83
Model N 0 2 5 0 2.71

Cardlytics currently has a consensus price target of $24.40, indicating a potential upside of 19.67%. Model N has a consensus price target of $23.20, indicating a potential upside of 53.24%. Given Model N’s higher possible upside, analysts clearly believe Model N is more favorable than Cardlytics.

Cardlytics Company Profile

Cardlytics, Inc. operates a purchase intelligence platform in the United States and the United Kingdom. It operates in two segments, Cardlytics Direct and Other Platform Solutions. The company's platform is the Cardlytics Direct solution, a proprietary native bank advertising channel that enables marketers to reach consumers through their trusted and frequently visited online and mobile banking channels. It also provides solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence outside the banking channel. The company was founded in 2008 and is headquartered in Atlanta, Georgia.

Model N Company Profile

Model N, Inc. provides revenue management cloud solutions for the life sciences, technology, and manufacturing companies. The company's cloud-based revenue management solutions include Revenue Cloud for Pharma, Revenue Cloud for Med Tech, Revenue Cloud for High Tech, and Revenue Cloud. It develops software applications, such as managed care and government pricing for life science companies; and channel incentives for technology companies. The company also offers revenue management processes, such as pricing, contracting, rebates, incentives, channel management, and regulatory compliance. In addition, Model N, Inc. provides implementation, managed, strategic, and customer support services. It primarily serves large and mid-sized organizations worldwide through its direct sales force. Model N, Inc. was founded in 1999 and is headquartered in San Mateo, California, with additional offices in the United States, India, and Switzerland.

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