Analyzing Cardlytics (NASDAQ:CDLX) & VIQ Solutions (NASDAQ:VQS)

Cardlytics (NASDAQ:CDLXGet Rating) and VIQ Solutions (NASDAQ:VQSGet Rating) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of recent ratings and target prices for Cardlytics and VIQ Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardlytics 2 2 1 0 1.80
VIQ Solutions 0 0 2 0 3.00

Cardlytics presently has a consensus price target of $16.00, indicating a potential upside of 293.12%. VIQ Solutions has a consensus price target of $2.00, indicating a potential upside of 684.31%. Given VIQ Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe VIQ Solutions is more favorable than Cardlytics.

Profitability

This table compares Cardlytics and VIQ Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardlytics -32.28% -15.26% -8.36%
VIQ Solutions -23.49% -58.79% -27.44%

Earnings and Valuation

This table compares Cardlytics and VIQ Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardlytics $267.12 million 0.51 -$128.57 million ($3.02) -1.35
VIQ Solutions $31.05 million 0.28 -$19.68 million ($0.34) -0.75

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

Institutional & Insider Ownership

97.4% of Cardlytics shares are held by institutional investors. Comparatively, 11.3% of VIQ Solutions shares are held by institutional investors. 3.7% of Cardlytics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Cardlytics has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500. Comparatively, VIQ Solutions has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500.

Summary

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

About Cardlytics

(Get Rating)

Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.

About VIQ Solutions

(Get Rating)

VIQ Solutions Inc. operates as a technology and service platform provider for digital evidence capture, retrieval, and content management in Australia, the United States, the United Kingdom, Canada, and internationally. It operates through two segments, Technology and Related Revenue, and Technology Services. The Technology segment develops, distributes, and licenses computer-based digital solutions based on its technology. The Technology Services segment provides recording and transcription services. The company offers CapturePro that securely speeds the capture, creation, and management of large volumes of information, as well as preserves and secures the spoken word and video image, and delivers data; MobileMic Pro for capturing and managing incident reports, recorded statements, case notes, and other vital information; NetScribe, a speech-to-text engine to consolidate, accelerate, and optimize transcription workflows; aiAssist, a multi-tenant workflow and analysis platform to manage, convert, and analyze large volumes of audio and visual content; and FirstDraft that converts audio files to text to provide access to interviews, testimonies, recorded calls, and dictations. It also provides legal, criminal justice, insurance, government, medical, corporate finance, media, and transcription services. The company was incorporated in 2004 and is based in Mississauga, Canada.

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