Stagwell (NASDAQ:STGW – Get Free Report) and Banzai International (NASDAQ:BNZI – Get Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
Profitability
This table compares Stagwell and Banzai International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stagwell | 1.00% | 22.61% | 4.18% |
| Banzai International | -233.45% | -1,082.13% | -74.79% |
Risk and Volatility
Stagwell has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Banzai International has a beta of -0.51, suggesting that its share price is 151% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stagwell | $2.91 billion | 0.55 | $29.10 million | $0.08 | 78.50 |
| Banzai International | $12.16 million | 0.47 | -$31.51 million | ($6.55) | -0.13 |
Stagwell has higher revenue and earnings than Banzai International. Banzai International is trading at a lower price-to-earnings ratio than Stagwell, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
35.6% of Stagwell shares are owned by institutional investors. Comparatively, 96.8% of Banzai International shares are owned by institutional investors. 5.6% of Stagwell shares are owned by company insiders. Comparatively, 2.8% of Banzai International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Stagwell and Banzai International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stagwell | 0 | 4 | 5 | 0 | 2.56 |
| Banzai International | 1 | 0 | 2 | 0 | 2.33 |
Stagwell presently has a consensus target price of $7.96, indicating a potential upside of 26.82%. Banzai International has a consensus target price of $260.00, indicating a potential upside of 30,822.93%. Given Banzai International’s higher possible upside, analysts clearly believe Banzai International is more favorable than Stagwell.
Summary
Stagwell beats Banzai International 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 Banzai International
Banzai International, Inc., a marketing technology company, provides data-driven marketing and sales solutions for various businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its products include Demio, a browser-based webinar platform with data and marketing features designed to help businesses engage with their audience through live events and on-demand, interactive video content; Boost, a software-as-a-service (SaaS) solution for social sharing by event registrants; and Reach, a SaaS and managed service to increase registration and attendance of marketing events. The company serves healthcare, financial services, e-commerce, technology, media, and other industries. Banzai International, Inc. was founded in 2015 and is based in Bainbridge Island, Washington.
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