Harte-Hanks (HHS) & Mattersight Corporation (MATR) Critical Analysis

Harte-Hanks (NYSE: HHS) and Mattersight Corporation (NASDAQ:MATR) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitabiliy, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Harte-Hanks and Mattersight Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harte-Hanks 0 2 1 0 2.33
Mattersight Corporation 0 0 1 0 3.00

Harte-Hanks currently has a consensus price target of $3.80, suggesting a potential upside of 287.76%. Given Harte-Hanks’ higher probable upside, research analysts plainly believe Harte-Hanks is more favorable than Mattersight Corporation.

Risk & Volatility

Harte-Hanks has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Mattersight Corporation has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500.

Profitability

This table compares Harte-Hanks and Mattersight Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harte-Hanks -2.38% -5.82% -1.91%
Mattersight Corporation -46.76% -955.39% -41.51%

Institutional and Insider Ownership

38.1% of Harte-Hanks shares are owned by institutional investors. Comparatively, 39.2% of Mattersight Corporation shares are owned by institutional investors. 13.4% of Harte-Hanks shares are owned by insiders. Comparatively, 30.2% of Mattersight Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Harte-Hanks and Mattersight Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Harte-Hanks $404.41 million 0.15 -$4.57 million N/A N/A
Mattersight Corporation $43.00 million 2.05 -$11.17 million ($0.81) -3.33

Harte-Hanks has higher revenue and earnings than Mattersight Corporation.

Summary

Harte-Hanks beats Mattersight Corporation on 7 of the 11 factors compared between the two stocks.

Harte-Hanks Company Profile

Harte Hanks, Inc. (Harte Hanks) is a multi-channel marketing company. The Company’s Customer Interaction business offers a range of marketing services, in media from direct mail to e-mail, including agency and digital services; database marketing solutions and business-to-business lead generation; direct mail, and contact centers. Its agency services are customer engagement agencies specializing in direct and digital communications for both consumer and business-to-business markets. The Company’s digital solutions integrate online services within the marketing mix and include search engine management, display, digital analytics, Website development and design, digital strategy, social media, e-mail, e-commerce and interactive relationship management and a range of other services that support its core businesses.

Mattersight Corporation Company Profile

Mattersight Corporation offers behavioral analytics and provides personality-based software products. The Company uses various applications, including predictive behavioral routing, performance management, quality assurance and predictive analytics (collectively, Behavioral Analytics) to analyze and predict customer behavior based on the language exchanged between agents and customers during brand interactions. The Company operates through the Behavioral Analytics segment. Its multi-channel technology captures the unstructured data of voice interactions (conversations), related customer and employee data, and employee desktop activity, and applies various algorithms against those interactions. Its Behavioral Analytics offerings help its clients to identify optimal customer/employee behavioral pairing for call routing; identify and understand customer personality, and measure customer satisfaction and agent performance on every analyzed call, among others.

Receive News & Ratings for Harte-Hanks Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Harte-Hanks Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply