The Meet Group, Inc. (NASDAQ:MEET) and Remark Holdings, Inc. (NASDAQ:MARK) are both Technology companies that recently hit new highs. Naturally, this has created a bit of a stir amongst investors. We will compare the two companies across various metrics including growth, profitability, risk, return, dividends, and valuation to determine if one is a better choice than the other.
The Meet Group, Inc. (NASDAQ:MEET) operates in the Internet Information Providers segment of the Technology sector. The company has grown sales at a 48.00% annual rate over the past five years, putting it in the high growth category. MEET has a net profit margin of 11.90% and is more profitable than the average company in the Internet Information Providers industry. In terms of efficiency, MEET has an asset turnover ratio of 0.45. This figure represents the amount of revenue a company generates per dollar of assets. MEET’s financial leverage ratio is 0.08, which indicates that the company’s asset base is primarily funded by equity capital. Company’s return on equity, which is really just the product of the company’s profit margin, asset turnover, and financial leverage ratios, is 5.70%, which is worse than the Internet Information Providers industry average ROE.
Stock’s free cash flow yield, which represents the amount of cash available to investors before dividends, expressed as a percentage of the stock price, is 2.98. Company trades at a P/E ratio of 11.58 , and is less expensive than the average stock in the Internet Information Providers industry. The average investment recommendation for MEET, taken from a group of Wall Street Analysts, is 2.50, or a hold.
Over the past three months, The Meet Group, Inc. insiders have been net sellers, acquiring a net of 15,000 shares. This implies that insiders have been feeling relatively bullish about the outlook for MEET. Insider activity and sentiment signals are important to monitor because they can shed light on how “risky” a stock is perceived to be at it’s current valuation. Knowing this, it makes sense to look at beta, a measure of market risk. MEET has a beta of 1.01 and therefore an above average level of market volatility.
Remark Holdings, Inc. (NASDAQ:MARK) operates in the Internet Information Providers segment of the Technology sector. MARK has increased sales at a 64.10% CAGR over the past five years, and is considered a high growth stock. The company has a net profit margin of -43.80% and is less profitable than the average Internet Information Providers player. MARK’s return on equity of 964.40% is better than the Internet Information Providers industry average.
The average analyst recommendation for MARK is 2.00, or a buy.
Remark Holdings, Inc. insiders have sold a net of 0 shares during the past three months, which implies that the company’s top executives have been feeling bearish about the stock’s outlook. Finally, MARK’s beta of 1.39 indicates that the stock has an above average level of market risk.
The Meet Group, Inc. (NASDAQ:MARK) scores higher than Remark Holdings, Inc. (NASDAQ:MEET) on 6 of the 13 measures compared between the two companies. MARK has the better fundamentals, scoring higher on growth, efficiency, leverage and return metrics.