Digital Media Solutions (NYSE: DMS – Get Rating) and 36Kr (NASDAQ: KRKR – Get Rating) are both small cap business services companies, but which is the best investment? We will compare the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Risk and Volatility
Digital Media Solutions has a beta of 1.22, meaning its stock price is 22% more volatile than the S&P 500. Comparatively, 36Kr has a beta of 0.77, meaning its stock price is 23% less volatile than the S&P 500.
Analyst Notes
This is a breakdown of recent recommendations and price targets for Digital Media Solutions and 36Kr, as reported by MarketBeat.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Digital Media Solutions | 0 | 0 | 3 | 0 | 3.00 |
| 36Kr | 0 | 0 | 1 | 0 | 3.00 |
Digital Media Solutions currently has a consensus target price of $11.50, indicating a potential upside of 237.24%. 36Kr has a consensus target price of $6.00, indicating a potential upside of 500.00%. Considering the higher possible upside of 36Kr, analysts clearly believe that 36Kr is more favorable than Digital Media Solutions.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Digital Media Solutions and 36Kr.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Digital Media Solutions | $427.93 million | 0.49 | $2.20 million | $0.04 | 85.25 |
| 36Kr | $49.71 million | 0.78 | -$14.06 million | ($0.33) | -3.03 |
Digital Media Solutions has revenues and profits above 36Kr. 36Kr trades at a lower price-to-earnings ratio than Digital Media Solutions, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares the net margins, return on equity and return on assets of Digital Media Solutions and 36Kr.
| Net margins | Return on equity | return on assets | |
| Digital Media Solutions | 0.36% | -3.09% | 0.70% |
| 36Kr | -28.24% | -28.54% | -18.18% |
Institutional and Insider Ownership
2.7% of Digital Media Solutions shares are held by institutional investors. Comparatively, 0.1% of 36Kr shares are held by institutional investors. 87.7% of the shares of Digital Media Solutions are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.
Summary
Digital Media Solutions beats 36Kr on 10 of the 12 factors compared between the two stocks.
About Digital Media Solutions (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 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.
About 36Kr (Get a rating)
36Kr Holdings Inc. provides business content and services to new economy players in the People’s Republic of China. He creates and distributes various content, including insightful company reports and timely market updates, as well as editorials and commentary in various industries, such as technology, consumer and retail, and healthcare. . The Company’s business services include online advertising services; value-added business services, such as integrated marketing, offline events and consulting services; and underwriting services to individuals, institutional investors and corporations. 36Kr Holdings Inc. was founded in 2010 and is based in Beijing, People’s Republic of China.
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