Critical Analysis: Suggestion Box (OTCMKTS:SGTB) versus Marchex (NASDAQ:MCHX)

Marchex (NASDAQ:MCHX) and Suggestion Box (OTCMKTS:SGTB) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

73.5% of Marchex shares are held by institutional investors. 23.5% of Marchex shares are held by company insiders. Comparatively, 8.6% of Suggestion Box shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Marchex and Suggestion Box, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marchex	1	1	0	0	1.50
Suggestion Box	0	0	0	0	0.00

Risk & Volatility

Marchex has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Suggestion Box has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500.

Valuation and Earnings

This table compares Marchex and Suggestion Box”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marchex	$48.12 million	1.23	-$4.95 million	($0.11)	-12.18
Suggestion Box	N/A	N/A	-$10,000.00	N/A	N/A

Suggestion Box has lower revenue, but higher earnings than Marchex.

Profitability

This table compares Marchex and Suggestion Box’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marchex	-10.38%	-13.57%	-10.40%
Suggestion Box	N/A	N/A	N/A

Summary

Marchex beats Suggestion Box on 5 of the 9 factors compared between the two stocks.

About Marchex

Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.

About Suggestion Box

Kuboo, Inc., doing business as Safe Communications, Inc., provides open and secure family communications. It operates a child safe virtual world that offers games, edutainment, controlled chat, and multiple channels online streaming in one platform. The company was founded in 2004 and is based in Scottsdale, Arizona.