Head-To-Head Survey: MeridianLink (NYSE:MLNK) and Agora (NASDAQ:API)

MeridianLink (NYSE:MLNKGet Rating) and Agora (NASDAQ:APIGet Rating) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares MeridianLink and Agora’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MeridianLink 1.26% 1.11% 0.60%
Agora -60.54% -11.80% -10.80%

Risk & Volatility

MeridianLink has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Agora has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500.

Institutional and Insider Ownership

66.8% of MeridianLink shares are owned by institutional investors. Comparatively, 43.6% of Agora shares are owned by institutional investors. 20.9% of MeridianLink shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MeridianLink and Agora, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MeridianLink 0 3 2 0 2.40
Agora 0 1 4 0 2.80

MeridianLink currently has a consensus target price of $19.80, indicating a potential upside of 29.50%. Agora has a consensus target price of $16.75, indicating a potential upside of 378.57%. Given Agora’s stronger consensus rating and higher possible upside, analysts plainly believe Agora is more favorable than MeridianLink.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MeridianLink $267.68 million 4.62 -$10.00 million $0.04 382.25
Agora $167.98 million 2.21 -$72.36 million ($0.89) -3.93

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

Summary

MeridianLink beats Agora on 11 of the 14 factors compared between the two stocks.

About MeridianLink

(Get Rating)

MeridianLink, Inc., a software and services company, provides software solutions for banks, credit unions, mortgage lenders, specialty lending providers, and consumer reporting agencies in the United States. The company offers MeridianLink Consumer, a consumer lending and account opening platform; MeridianLink Opening, an online account opening software that unifies deposit account opening and funding for various channels and products; and MeridianLink DecisionLender, a loan origination software (LOS) for finance companies. It also provides MeridianLink Engage, an end-to-end consumer lending, account, and card marketing automation solution; MeridianLink Mortgage, a SaaS cloud-based end-to-end loan origination software; MeridianLink Collect, a cloud-based debt collection software; and Mortgage Credit Link, a web-based order fulfillment hub. In addition, the company provides solutions, including end-to-end platform, loan origination system, mortgage loan origination system, deposit account opening, data and reporting, collections, and consulting and analysis. MeridianLink, Inc. was founded in 1998 and is headquartered in Costa Mesa, California.

About Agora

(Get Rating)

Agora, Inc. provides Real-Time Engagement Platform-as-a-Service (RTE-PaaS) in the People's Republic of China, the United States, and internationally. The company RTE-PaaS offers developers with software tools to embed real-time video, voice, and messaging functionalities into applications. Its products include video calling, voice calling, interactive live streaming, chat, signaling. Acceleration products; and extensions, which comprise interactive whiteboard, recording, analytics, and extensions marketplace products to enable developers to launch RTE in specific use cases and verticals. The company also provides Flexible Classroom that offers a low-code application Platform as a Service; and App Builder, no-code application platform. Its real-time engagement products are delivered through its Software-Defined Real-Time Network, which is a virtual network overlay on top of the public internet. The company serves social, entertainment, gaming, education, enterprise solutions, e-commerce, financial services, healthcare, and IoT industries. Agora, Inc. was incorporated in 2013 and is headquartered in Shanghai, the People's Republic of China.

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