Loyalty Ventures (NASDAQ:LYLT – Get Rating) and Digital Media Solutions (NYSE:DMS – Get Rating) are both small cap business services companies, but which is the best investment? We’ll compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Benefits and evaluation
This table compares revenue, earnings per share, and valuation of Loyalty Ventures and Digital Media Solutions.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Loyalty companies||$735.31 million||0.35||-$2.34 million||N / A||N / A|
|Digital Media Solutions||$427.93 million||0.20||$2.20 million||($0.04)||-34.00|
Digital Media Solutions has lower revenues, but higher profits than Loyalty Ventures.
Institutional and insider ownership
77.3% of Loyalty Ventures shares are held by institutional investors. By comparison, 2.3% of Digital Media Solutions shares are held by institutional investors. 0.2% of Loyalty Ventures shares are held by company insiders. By comparison, 87.7% of the shares of Digital Media Solutions are held by insiders of the company. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.
This table compares the net margins, return on equity and return on assets of Loyalty Ventures and Digital Media Solutions.
|Net margins||Return on equity||return on assets|
|Loyalty companies||N / A||N / A||N / A|
|Digital Media Solutions||-0.28%||-3.09%||-2.30%|
This is a breakdown of current ratings and price targets for Loyalty Ventures and Digital Media Solutions, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Digital Media Solutions||0||1||3||0||2.75|
Loyalty Ventures currently has a consensus price target of $20.00, suggesting a potential upside of 90.29%. Digital Media Solutions has a consensus price target of $11.50, suggesting a potential upside of 745.59%. Given Digital Media Solutions’ higher consensus rating and higher upside potential, analysts clearly believe that Digital Media Solutions is more favorable than Loyalty Ventures.
Loyalty Ventures beats Digital Media Solutions on 6 out of 11 factors compared between the two stocks.
About Loyalty Ventures (Get an evaluation)
Loyalty Ventures Inc. provides consumer loyalty solutions. The Company owns and operates the AIR MILES reward program, an end-to-end loyalty platform; and BrandLoyalty, a campaign-based loyalty solution for grocers and other high-frequency retailers. It also offers marketing, clientele, rewards and exchange management services for sponsors. The company helps financial services providers, retailers and other consumer-facing businesses create and increase customer loyalty across various touchpoints. Loyalty Ventures Inc. was incorporated in 2021 and is based in Plano, Texas.
About Digital Media Solutions (Get an evaluation)
Digital Media Solutions, Inc. operates as a digital performance marketing company that offers a software delivery platform in the United States. It operates through three segments: Brand Direct, Marketplace and Other. The company operates as a performance marketing engine for businesses in various industries including consumer finance, e-commerce, education, insurance, home services, brand performance, automotive , concerts, health and wellness and work placements. It also provides managed services that help customers access and control advertising spend; and marketing automation software as a service to clients. The company was founded in 2012 and is based in Clearwater, Florida.
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