Comparing Cardlytics (NASDAQ:CDLX) and Qutoutiao (NASDAQ:QTT)

Cardlytics (NASDAQ:CDLX) and Qutoutiao (NASDAQ:QTT) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Cardlytics and Qutoutiao’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardlytics -25.53% -84.02% -27.18%
Qutoutiao N/A N/A N/A

Insider and Institutional Ownership

71.4% of Cardlytics shares are owned by institutional investors. Comparatively, 0.4% of Qutoutiao shares are owned by institutional investors. 21.9% of Cardlytics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Cardlytics and Qutoutiao’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardlytics $150.68 million 4.27 -$53.04 million ($2.14) -13.33
Qutoutiao $43.70 million 25.02 -$282.54 million ($2.10) -1.84

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cardlytics and Qutoutiao, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardlytics 0 0 7 0 3.00
Qutoutiao 0 2 2 0 2.50

Cardlytics currently has a consensus price target of $25.67, suggesting a potential downside of 10.04%. Qutoutiao has a consensus price target of $12.25, suggesting a potential upside of 217.36%. Given Qutoutiao’s higher probable upside, analysts plainly believe Qutoutiao is more favorable than Cardlytics.

Summary

Qutoutiao beats Cardlytics on 7 of the 13 factors compared between the two stocks.

About Cardlytics

Cardlytics, Inc. operates a purchase intelligence platform in the United States and the United Kingdom. It operates in two segments, Cardlytics Direct and Other Platform Solutions. The company's platform is the Cardlytics Direct solution, a proprietary native bank advertising channel that enables marketers to reach consumers through their trusted and frequently visited online and mobile banking channels. It also provides solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence outside the banking channel. The company was founded in 2008 and is headquartered in Atlanta, Georgia.

About Qutoutiao

Qutoutiao Inc. operates mobile platforms for the distribution, consumption, and sharing of light entertainment content in the People's Republic of China. The company operates Qutoutiao, a mobile application that aggregates articles and short videos from professional media and freelancers and presents customized feeds to users; and Quduopai, a mobile application that allows users to create, upload, and view videos. It also provides Midu Novels, a mobile literature application that offers users free literature supported by advertising. The company was formerly known as Qtech Ltd. and changed its name to Qutoutiao Inc. in July 2018. Qutoutiao Inc. was founded in 2016 and is headquartered in Shanghai, China.

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