Digital Media Solutions (NYSE:DMS – Get Rating) and 36Kr (NASDAQ:KRKR – Get Rating) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Risk and Volatility
Digital Media Solutions has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, 36Kr has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Digital Media Solutions and 36Kr, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Digital Media Solutions||0||0||3||0||3.00|
Digital Media Solutions presently has a consensus target price of $11.50, indicating a potential upside of 237.24%. 36Kr has a consensus target price of $6.00, indicating a potential upside of 500.00%. Given 36Kr’s higher possible upside, analysts plainly believe 36Kr is more favorable than Digital Media Solutions.
Earnings & Valuation
This table compares Digital Media Solutions and 36Kr’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digital Media Solutions||$427.93 million||0.49||$2.20 million||$0.04||85.25|
|36Kr||$49.71 million||0.78||-$14.06 million||($0.33)||-3.03|
Digital Media Solutions has higher revenue and earnings than 36Kr. 36Kr is trading at a lower price-to-earnings ratio than Digital Media Solutions, indicating that it is currently the more affordable of the two stocks.
This table compares Digital Media Solutions and 36Kr’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Digital Media Solutions||0.36%||-3.09%||0.70%|
Institutional and Insider Ownership
2.7% of Digital Media Solutions shares are owned by institutional investors. Comparatively, 0.1% of 36Kr shares are owned by institutional investors. 87.7% of Digital Media Solutions shares are owned by company 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.
Digital Media Solutions beats 36Kr on 10 of the 12 factors compared between the two stocks.
About Digital Media Solutions (Get Rating)
Digital Media Solutions, Inc. operates as a digital performance marketing company that offers a software delivery platform in the United States. It operates through three segments: Brand Direct, Marketplace, and Other. The company operates as a performance marketing engine for companies across various industries, including consumer finance, e-commerce, education, insurance, home services, brand performance, automotive, gig, health and wellness, and career placements. It also provides managed services that help clients to access and control the advertising expenses; and marketing automation software as a service to clients. The company was founded in 2012 and is headquartered in Clearwater, Florida.
About 36Kr (Get Rating)
36Kr Holdings Inc. offers content and business services to new economy participants in the People's Republic of China. It creates and distributes various content, including insightful reports on companies and timely market updates, as well as editorials and commentaries in various industries, such as technology, consumer and retail, and healthcare. The company's business services include online advertising services; enterprise value-added services, such as integrated marketing, offline events, and consulting services; and subscription services to individuals, institutional investors, and enterprises. 36Kr Holdings Inc. was founded in 2010 and is based in Beijing, the People's Republic of China.
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