Comparing Advantage Solutions (NASDAQ:ADV) & Baosheng Media Group (NASDAQ:BAOS)

Baosheng Media Group (NASDAQ:BAOS) and Advantage Solutions (NASDAQ:ADV) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Baosheng Media Group and Advantage Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baosheng Media Group	0	0	0	0	N/A
Advantage Solutions	0	2	2	0	2.50

Advantage Solutions has a consensus target price of $3.43, indicating a potential downside of 18.25%. Given Advantage Solutions’ higher possible upside, analysts clearly believe Advantage Solutions is more favorable than Baosheng Media Group.

Profitability

This table compares Baosheng Media Group and Advantage Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baosheng Media Group	N/A	N/A	N/A
Advantage Solutions	-1.35%	-4.51%	-1.31%

Institutional and Insider Ownership

24.8% of Advantage Solutions shares are held by institutional investors. 22.6% of Baosheng Media Group shares are held by insiders. Comparatively, 5.5% of Advantage Solutions shares are held by 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.

Valuation and Earnings

This table compares Baosheng Media Group and Advantage Solutions’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baosheng Media Group	$2.41 million	2.11	-$23.74 million	N/A	N/A
Advantage Solutions	$4.22 billion	0.32	-$63.26 million	($0.20)	-21.00

Baosheng Media Group has higher earnings, but lower revenue than Advantage Solutions.

Volatility & Risk

Baosheng Media Group has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Advantage Solutions has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Summary

Baosheng Media Group beats Advantage Solutions on 6 of the 11 factors compared between the two stocks.

About Baosheng Media Group

Baosheng Media Group Holdings Limited operates as an online marketing solution provider in the People's Republic of China. It connects advertisers, online media, and helping advertisers to manage their online marketing activities in various ways, including advising on advertising strategies, budget, and choice of advertising channels; procures ad inventory; offers ad optimization services; and administrates and fine-tunes the ad placement process. The company also serves media businesses in various ways, including identifying advertisers to buy their ad inventory; facilitating payment arrangements with advertisers; assisting advertisers in handling ad deployment logistics with media; and engaging in other marketing and promotion activities aimed at educating and inducing advertisers to use online advertising. Its advertising services comprise search engine marketing (SEM) services, such as the deployment of ranked search ads and other display search ads offered by search engine operators; and non-SEM services consisting of social media marketing, in-feed advertising, and mobile app advertising through deploying ads on media, such as social media platforms, short-video platforms, news portals, and mobile apps. The company was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

About Advantage Solutions

Advantage Solutions Inc. provides outsourced solutions to consumer goods companies 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; administration; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising, in-store media, and digital commerce. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; and retailer-centric services, such as retail experiential, private label, digital marketing, and digital media and advertising. 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.