Comparing j2 Global (JCOM) and ExactTarget (ET)

ExactTarget (NYSE: ET) and j2 Global (NASDAQ:JCOM) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitabiliy and dividends.

Dividends

j2 Global pays an annual dividend of $1.50 per share and has a dividend yield of 1.8%. ExactTarget does not pay a dividend. j2 Global pays out 49.3% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares ExactTarget and j2 Global’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ExactTarget N/A N/A N/A N/A N/A
j2 Global $928.42 million 4.40 $375.89 million $3.04 27.85

j2 Global has higher revenue and earnings than ExactTarget.

Profitability

This table compares ExactTarget and j2 Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ExactTarget N/A N/A N/A
j2 Global 15.98% 26.41% 12.52%

Analyst Ratings

This is a summary of recent recommendations for ExactTarget and j2 Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ExactTarget 0 0 0 0 N/A
j2 Global 0 1 3 0 2.75

j2 Global has a consensus price target of $97.25, indicating a potential upside of 14.86%. Given j2 Global’s higher probable upside, analysts clearly believe j2 Global is more favorable than ExactTarget.

Summary

j2 Global beats ExactTarget on 7 of the 8 factors compared between the two stocks.

About ExactTarget

ExactTarget, Inc. is a global provider of cross-channel, interactive marketing software-as-a-service (SaaS) solutions. The Company’s solutions provide marketers with a suite of integrated applications. The Company’s suite of cross-channel, interactive marketing applications include e-mail, mobile, social media and sites, is built on its flexible multi-tenant SaaS platform. These channel applications are integrated with its campaign management, calendaring, dashboard, integrated reporting, marketing automation and data management tools. The Company also provides open application programming interfaces (APIs) and developer tools that allow third parties to embed its technology into their solutions and build applications on its platform. The Company generates revenue through the sale of subscriptions to its suite of cross-channel, interactive marketing SaaS solutions and the delivery of professional services. In October 2012, it acquired iGoDigital.

About j2 Global

j2 Global, Inc. is a provider of services delivered through the Internet. The Company provides cloud services to businesses of all sizes, from individuals to enterprises. The Company operates in two segments: Business Cloud Services and Digital Media. The Company’s Digital Media business segment consists of the Web properties and business operations of Ziff Davis, Inc. (Ziff Davis). The Company’s cloud services and solutions include fax, voice and unified communications, email and customer relationship management, online backup, global network and operations, and customer support services. In February 2013, it acquired IGN Entertainment, Inc. On November 9, 2012, the Company acquired Ziff Davis. Effective March 18, 2013, it acquired MetroFax Inc. In April 2013, the Company acquired Backup Connect BV.

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