MDC Partners (NASDAQ: MDCA) and Tremor Video (NYSE:TRMR) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitabiliy, institutional ownership, valuation and analyst recommendations.
MDC Partners has a beta of 1.56, suggesting that its stock price is 56% more volatile than the SP 500. Comparatively, Tremor Video has a beta of 1.36, suggesting that its stock price is 36% more volatile than the SP 500.
This table compares MDC Partners and Tremor Video’s revenue, earnings per share and valuation.
MDC Partners has higher revenue and earnings than Tremor Video. MDC Partners is trading at a lower price-to-earnings ratio than Tremor Video, indicating that it is currently the more affordable of the two stocks.
MDC Partners pays an annual dividend of $0.21 per share and has a dividend yield of 2.0%. Tremor Video does not pay a dividend. MDC Partners pays out -30.9% of its earnings in the form of a dividend.
Insider Institutional Ownership
86.1% of MDC Partners shares are held by institutional investors. Comparatively, 36.4% of Tremor Video shares are held by institutional investors. 3.4% of MDC Partners shares are held by company insiders. Comparatively, 8.2% of Tremor Video shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares MDC Partners and Tremor Video’s net margins, return on equity and return on assets.
This is a summary of current recommendations and price targets for MDC Partners and Tremor Video, as provided by MarketBeat.
MDC Partners currently has a consensus price target of $11.83, indicating a potential upside of 13.24%. Tremor Video has a consensus price target of $3.13, indicating a potential upside of 38.89%. Given Tremor Video’s stronger consensus rating and higher probable upside, analysts plainly believe Tremor Video is more favorable than MDC Partners.
MDC Partners beats Tremor Video on 10 of the 15 factors compared between the two stocks.
About MDC Partners
MDC Partners Inc. is a provider of global marketing, advertising, activation, communications and strategic consulting solutions. The Company and its subsidiary agencies (Partner Firms) deliver a range of customized services. The Company’s segments include Reportable Segment, All Other and Corporate. The Reportable segment consists of the Company’s integrated advertising, media and public relations service companies. The All Other segment consists of the companies that provide the Company’s specialist marketing offerings, such as direct marketing, sales promotion, market research, strategic communications, database and customer relationship management, data analytics and insights, corporate identity, and design and branding. The Reportable segment includes the operations of various companies, such as Allison Partners, Anomaly, Crispin Porter + Bogusky, Doner, Forsman Bodenfors, Hunter PR, kbs, MDC Media Partners and 72andSunny.
About Tremor Video
Tremor Video, Inc. is an advertising technology company. The Company provides software for video advertising effectiveness. The Company operates through online video advertising services segment. Its technology optimizes performance of video advertisement campaigns across all screens, including computers, smartphones, tablets and connected televisions. The Company’s buyer platform enables advertisers, agencies and other buyers of advertising to discover, buy, optimize and measure the effectiveness of their video advertisement campaigns. The Company’s technology analyzes video content, detects viewer and system attributes, and uses its repository of stored third-party data to optimize and target the delivery of advertisement campaigns. Its buyers can transact directly on its buyer platform through the Tremor Video DSP, a user interface that allows them to manage the execution of their campaigns on a programmatic basis. The Company also offers a seller platform, the Tremor Video SSP.
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