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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XO Group $152.12 million 3.15 $12.12 million $0.34 54.82
Sizmek N/A N/A N/A ($4.38) -0.89

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

Insider & Institutional Ownership

84.4% of XO Group shares are owned by institutional investors. Comparatively, 41.6% of Sizmek shares are owned by institutional investors. 6.8% of XO Group shares are owned by insiders. Comparatively, 15.0% of Sizmek shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for XO Group and Sizmek, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XO Group 0 3 2 0 2.40
Sizmek 0 0 0 0 N/A

XO Group currently has a consensus target price of $20.50, indicating a potential upside of 9.98%. Given XO Group’s higher possible upside, equities analysts plainly believe XO Group is more favorable than Sizmek.

Profitability

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

Net Margins Return on Equity Return on Assets
XO Group 5.35% 5.55% 4.61%
Sizmek -2.13% -3.56% -2.52%

Summary

XO Group beats Sizmek on 8 of the 9 factors compared between the two stocks.

About XO Group

XO Group Inc. is engaged in providing content and marketing solutions, targeted advertising programs, transactions and merchandise. The Company’s multi-platform brands guide couples through transformative life stages from getting married with The Knot, to moving in together with The Nest, to having a baby with The Bump, and helping bring celebrations to life with entertainment vendors from GigMasters.com Incorporated (GigMasters). The Knot is the wedding resource and marketplace that engages, matches and connects couples. The Bump is a pregnancy and parenting brand, providing personalized information, content and tools. The Nest is a brand focused on nesters setting up homes and navigating their lives together. GigMasters is an event marketplace for finding and booking the entertainment and vendors for birthday parties, weddings, anniversaries and corporate events, among others. The Company’s product offerings include Online Media Advertising, Transactions, and Publishing and Other.

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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