Sito Mobile (NASDAQ: SITO) and Cellcom Israel (NYSE:CEL) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Analyst Recommendations

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This is a summary of current ratings and recommmendations for Sito Mobile and Cellcom Israel, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sito Mobile 0 1 5 0 2.83
Cellcom Israel 1 0 0 0 1.00

Sito Mobile presently has a consensus target price of $8.40, suggesting a potential upside of 102.90%. Given Sito Mobile’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sito Mobile is more favorable than Cellcom Israel.

Risk and Volatility

Sito Mobile has a beta of -1.36, suggesting that its stock price is 236% less volatile than the S&P 500. Comparatively, Cellcom Israel has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.

Profitability

This table compares Sito Mobile and Cellcom Israel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sito Mobile -37.29% -64.61% -32.99%
Cellcom Israel 3.08% 8.63% 1.90%

Insider and Institutional Ownership

13.4% of Sito Mobile shares are owned by institutional investors. Comparatively, 10.4% of Cellcom Israel shares are owned by institutional investors. 6.5% of Sito Mobile shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Sito Mobile and Cellcom Israel’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sito Mobile $43.10 million 2.38 -$1.40 million ($0.75) -5.52
Cellcom Israel $1.05 billion 0.70 $39.00 million $0.32 22.66

Cellcom Israel has higher revenue and earnings than Sito Mobile. Sito Mobile is trading at a lower price-to-earnings ratio than Cellcom Israel, indicating that it is currently the more affordable of the two stocks.

Summary

Cellcom Israel beats Sito Mobile on 8 of the 14 factors compared between the two stocks.

Sito Mobile Company Profile

SITO Mobile, Ltd. operates a mobile location-based advertising platform serving businesses, advertisers and brands. The Company’s offerings include SITO Location-Based Advertising and SITO Mobile Messaging. SITO Location-Based Advertising delivers display advertisements and videos on behalf of advertisers, including various features, such as Geo-fencing, Verified walk-in, Behavioral Targeting, and Analytics and Optimization. Geo-fencing targets customers within a certain radius of location and uses technology to push coupons, advertisements and promotions to mobile applications. Verified Walk-in tracks foot-traffic to locations and which advertisements drive action. Behavioral Targeting tracks past behaviors over 30 to 90 day increments allowing for real-time campaign management. Analytics and Optimization is a culling and building measurement system. SITO Mobile Messaging is a platform for building and controlling programs, including messaging and customer incentive programs.

Cellcom Israel Company Profile

Cellcom Israel Ltd. is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company’s services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

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