Cardlytics (NASDAQ:CDLX – Get Free Report) and Magnite (NASDAQ:MGNI – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for Cardlytics and Magnite, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cardlytics | 2 | 1 | 0 | 0 | 1.33 |
| Magnite | 0 | 1 | 11 | 0 | 2.92 |
Cardlytics presently has a consensus price target of $10.00, suggesting a potential upside of 495.24%. Magnite has a consensus price target of $29.36, suggesting a potential upside of 34.57%. Given Cardlytics’ higher probable upside, equities research analysts plainly believe Cardlytics is more favorable than Magnite.
Volatility and Risk
Cardlytics has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Magnite has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500.
Institutional and Insider Ownership
68.1% of Cardlytics shares are held by institutional investors. Comparatively, 73.4% of Magnite shares are held by institutional investors. 5.9% of Cardlytics shares are held by insiders. Comparatively, 3.2% of Magnite shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Cardlytics and Magnite’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cardlytics | -55.92% | -956.56% | -38.39% |
| Magnite | 22.49% | 9.33% | 2.77% |
Valuation & Earnings
This table compares Cardlytics and Magnite”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cardlytics | $190.00 million | 0.05 | -$103.49 million | ($18.48) | -0.09 |
| Magnite | $742.04 million | 4.22 | $144.61 million | $1.09 | 20.02 |
Magnite has higher revenue and earnings than Cardlytics. Cardlytics is trading at a lower price-to-earnings ratio than Magnite, indicating that it is currently the more affordable of the two stocks.
Summary
Magnite beats Cardlytics on 12 of the 14 factors compared between the two stocks.
About Cardlytics
Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
About Magnite
Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.
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