Contrasting YuMe (YUME) & Finjan (FNJN)

YuMe (NYSE: YUME) and Finjan (NASDAQ:FNJN) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for YuMe and Finjan, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YuMe 0 0 0 0 N/A
Finjan 0 0 1 0 3.00

Finjan has a consensus price target of $5.00, suggesting a potential upside of 180.90%. Given Finjan’s higher possible upside, analysts plainly believe Finjan is more favorable than YuMe.

Volatility and Risk

YuMe has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Finjan has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares YuMe and Finjan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
YuMe 5.25% 10.01% 6.37%
Finjan 37.53% 100.25% 37.40%

Dividends

YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 3.2%. Finjan does not pay a dividend. YuMe pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares YuMe and Finjan’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YuMe $160.41 million 0.81 -$7.72 million $0.10 37.00
Finjan $18.39 million 2.68 $350,000.00 $0.53 3.36

Finjan has lower revenue, but higher earnings than YuMe. Finjan is trading at a lower price-to-earnings ratio than YuMe, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

48.2% of YuMe shares are held by institutional investors. Comparatively, 33.8% of Finjan shares are held by institutional investors. 29.3% of YuMe shares are held by insiders. Comparatively, 9.6% of Finjan shares are held by 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.

Summary

Finjan beats YuMe on 10 of the 15 factors compared between the two stocks.

YuMe Company Profile

YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.

Finjan Company Profile

Finjan Holdings, Inc., through its subsidiaries, operates as a cybersecurity company, provides intellectual property licensing and enforcement services. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The company’s technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also provides investments in cybersecurity technologies and intellectual property; offers cyber risk and cyber security advisory services; and develops mobile security applications. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.

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