Autobytel (NASDAQ: AUTO) and Sizmek (NASDAQ:SZMK) are both small-cap cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Autobytel and Sizmek, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autobytel 0 0 2 0 3.00
Sizmek 0 0 0 0 N/A

Autobytel currently has a consensus price target of $12.00, suggesting a potential upside of 33.19%. Given Autobytel’s higher probable upside, equities research analysts plainly believe Autobytel is more favorable than Sizmek.

Profitability

This table compares Autobytel and Sizmek’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autobytel 1.51% 7.47% 5.68%
Sizmek -2.13% -3.56% -2.52%

Insider and Institutional Ownership

52.3% of Autobytel shares are held by institutional investors. Comparatively, 41.6% of Sizmek shares are held by institutional investors. 20.7% of Autobytel shares are held by insiders. Comparatively, 15.0% of Sizmek shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Autobytel and Sizmek’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Autobytel $156.68 million 0.75 $3.87 million $0.17 53.00
Sizmek N/A N/A N/A ($4.38) -0.89

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

Summary

Autobytel beats Sizmek on 9 of the 9 factors compared between the two stocks.

About Autobytel

AutoWeb, Inc., formerly Autobytel Inc., is an automotive marketing services company that assists automotive retail dealers and automotive manufacturers market and sell new and used vehicles to consumers through the programs for online lead referrals, dealer marketing products and services, and online advertising programs and mobile products. The Company operates through providing automotive marketing services segment. Its consumer-facing automotive Websites, including Website Autobytel.com, provide consumers with information and tools to aid them with the automotive purchase decisions and ability to submit inquiries requesting dealers to contact the consumers regarding purchasing or leasing vehicles. Its AutoWeb pay-per-click advertising marketplace program uses technology to refer consumer traffic to dealers and manufacturer Websites.

About Sizmek

Sizmek Inc. (Sizmek) is an open ad management company. The Company operates an independent online advertisement campaign management and distribution platform. The Company helps advertisers, agencies and publishers engage with consumers across multiple online media channels (mobile, display, video and social). It connects approximately 19,000 advertisers and 3,700 agencies to audiences in over 60 countries. Its online campaign management platform, Sizmek MDX, helps advertisers, agencies and publishers in managing their advertising budgets across multiple online media channels and formats, such as desktop, mobile, rich media, social media, in-stream video, interactive video, display and search. The Sizmek MDX platform provides its customers with an end-to-end solution in planning, creative, delivery, measurement and optimization of online media campaigns. Its solutions are delivered through a technology platform that allows delivery of global online media advertising campaigns.

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