Head-To-Head Contrast: Stagwell (NASDAQ:STGW) & Marin Software (NASDAQ:MRIN)

Stagwell (NASDAQ:STGW) and Marin Software (NASDAQ:MRIN) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares Stagwell and Marin Software”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stagwell	$2.84 billion	0.43	$2.26 million	($0.01)	-455.50
Marin Software	$17.73 million	0.16	-$21.92 million	($3.93)	-0.23

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

Profitability

This table compares Stagwell and Marin Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stagwell	0.02%	15.38%	3.01%
Marin Software	N/A	N/A	N/A

Volatility & Risk

Stagwell has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Marin Software has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Stagwell and Marin Software, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stagwell	0	1	3	0	2.75
Marin Software	0	0	0	0	0.00

Stagwell presently has a consensus target price of $9.13, suggesting a potential upside of 100.33%. Given Stagwell’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Stagwell is more favorable than Marin Software.

Insider & Institutional Ownership

35.6% of Stagwell shares are held by institutional investors. Comparatively, 9.5% of Marin Software shares are held by institutional investors. 3.8% of Stagwell shares are held by company insiders. Comparatively, 9.3% of Marin Software shares are held 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.

Summary

Stagwell beats Marin Software on 12 of the 14 factors compared between the two stocks.

About Stagwell

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.

About Marin Software

Marin Software Incorporated, together with its subsidiaries, provides enterprise marketing software for advertisers and agencies in the United States, the United Kingdom, and internationally. It offers MarinOne, a search, social, and eCommerce advertising platform, as well as self-serves solutions and managed services. The company markets and sells its solutions to advertisers directly, and through advertising agencies that use its platform on behalf of their customers. Marin Software Incorporated was incorporated in 2006 and is headquartered in San Francisco, California.