Digital Media Solutions (NYSE:DMS – Get Rating) and Kuboo (OTCMKTS:SGTB – Get Rating) are both small cap business services companies, but which is the better stock? We’ll compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Risk and Volatility
Digital Media Solutions has a beta of 1.47, suggesting its stock price is 47% more volatile than the S&P 500. Comparatively, Kuboo has a beta of -0.62, suggesting its stock price is 162 % less volatile than the S&P 500.
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of Digital Media Solutions and Kuboo.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Digital Media Solutions | $427.93 million | 0.24 | $2.20 million | ($0.04) | -41.00 |
| Kuboo | N / A | N / A | N / A | N / A | N / A |
Digital Media Solutions has higher revenue and profit than Kuboo.
Institutional and insider ownership
2.3% of the shares of Digital Media Solutions are held by institutional investors. 86.4% of the shares of Digital Media Solutions are held by insiders. By comparison, 8.6% of Kuboo’s shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.
Profitability
This table compares the net margins, return on equity and return on assets of Digital Media Solutions and Kuboo.
| Net margins | Return on equity | return on assets | |
| Digital Media Solutions | -0.28% | -3.09% | -2.30% |
| Kuboo | N / A | N / A | N / A |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Digital Media Solutions and Kuboo, as provided by MarketBeat.com.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Digital Media Solutions | 0 | 1 | 2 | 0 | 2.67 |
| Kuboo | 0 | 0 | 0 | 0 | N / A |
Digital Media Solutions currently has a consensus target price of $9.75, suggesting a potential upside of 494.51%. Given Digital Media Solutions’ possible higher upside, equity research analysts clearly believe that Digital Media Solutions is more favorable than Kuboo.
Summary
Digital Media Solutions beats Kuboo on 6 of the 9 factors compared between the two stocks.
Digital Media Solutions Company Profile (Get a rating)
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 Others. 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.
Kuboo Company Profile (Get a rating)
Kuboo, Inc., doing business as Safe Communications, Inc., provides open and secure family communications. It operates a child-safe virtual world that offers games, edutainment, controlled chat, and multiple online streaming channels in a single platform. The company was founded in 2004 and is based in Scottsdale, Arizona.
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