MediaAlpha (NYSE:MAX – Get Free Report) and 36Kr (NASDAQ:KRKR – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.
Volatility & Risk
MediaAlpha has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, 36Kr has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.
Insider & Institutional Ownership
64.4% of MediaAlpha shares are owned by institutional investors. Comparatively, 0.1% of 36Kr shares are owned by institutional investors. 14.6% of MediaAlpha shares are owned by insiders. Comparatively, 39.4% of 36Kr shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for MediaAlpha and 36Kr, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MediaAlpha | 0 | 5 | 3 | 1 | 2.56 |
| 36Kr | 1 | 0 | 0 | 0 | 1.00 |
MediaAlpha currently has a consensus price target of $14.71, indicating a potential upside of 2.51%. Given MediaAlpha’s stronger consensus rating and higher probable upside, research analysts clearly believe MediaAlpha is more favorable than 36Kr.
Profitability
This table compares MediaAlpha and 36Kr’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MediaAlpha | 8.35% | -994.23% | 29.14% |
| 36Kr | N/A | N/A | N/A |
Earnings and Valuation
This table compares MediaAlpha and 36Kr”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MediaAlpha | $1.11 billion | 0.76 | $25.62 million | $1.82 | 7.89 |
| 36Kr | $32.59 million | 0.16 | $1.55 million | ($2.40) | -1.13 |
MediaAlpha has higher revenue and earnings than 36Kr. 36Kr is trading at a lower price-to-earnings ratio than MediaAlpha, indicating that it is currently the more affordable of the two stocks.
Summary
MediaAlpha beats 36Kr on 13 of the 15 factors compared between the two stocks.
About MediaAlpha
MediaAlpha operates a technology platform that connects consumers shopping for insurance with insurance carriers and distributors. Its marketplace uses consumer-intent data and real-time bidding to help match shoppers with relevant insurance products and providers. The company focuses on insurance categories including auto, home, health and life. Its platform serves carriers, agents, brokers and other insurance distributors, with its business primarily centered on the U.S. market. MediaAlpha became an independent company in 2014 after operating within White Mountains Insurance Group.
About 36Kr
36Kr Holdings Inc. (NASDAQ: KRKR) operates a business and technology media platform focused on China’s new economy. Through its website, mobile applications and other digital channels, the company provides news, analysis, interviews and commentary covering technology, startups, entrepreneurship, venture capital, consumer brands and broader business trends. The company also serves businesses, entrepreneurs, investors and corporate decision-makers through online and offline events, conferences, professional communities and content-related services.
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