Analyzing Cardlytics (NASDAQ:CDLX) and Gray Media (NYSE:GTN.A)

Cardlytics (NASDAQ:CDLX) and Gray Media (NYSE:GTN.A) are both small-cap communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Insider and Institutional Ownership

68.1% of Cardlytics shares are owned by institutional investors. Comparatively, 0.3% of Gray Media shares are owned by institutional investors. 5.9% of Cardlytics shares are owned by company insiders. Comparatively, 13.3% of Gray Media shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Cardlytics and Gray Media”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardlytics	$233.27 million	0.10	-$103.49 million	($18.48)	-0.22
Gray Media	$3.15 billion	0.21	-$85.00 million	($0.61)	-10.51

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

Risk and Volatility

Cardlytics has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Gray Media has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Cardlytics and Gray Media, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardlytics	2	1	0	0	1.33
Gray Media	0	0	0	0	0.00

Cardlytics currently has a consensus target price of $10.00, suggesting a potential upside of 151.26%. Given Cardlytics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Cardlytics is more favorable than Gray Media.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cardlytics	-55.92%	-956.56%	-38.39%
Gray Media	-0.83%	-1.12%	-0.23%

Summary

Gray Media beats Cardlytics on 8 of the 13 factors compared between the two stocks.

About Cardlytics

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 Gray Media

Gray Television, Inc., a television broadcast company, owns and operates television stations and digital assets in the United States. As of February 28, 2019, it owned and operated television stations in 91 television markets broadcasting approximately 400 program streams, including approximately 150 channels affiliated with the CBS Network, the NBC Network, the ABC Network, and the FOX Network. The company also broadcasts secondary digital channels affiliated to ABC, CBS, and FOX, as well as channels affiliated with various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, This TV Network, Antenna TV, Telemundo, Cozi, Heroes and Icons, and MOVIES! Network; and local news/weather channels in various markets. In addition, it is also involved in the video program production, marketing, and digital businesses including Raycom Sports, Tupelo-Raycom, and RTM Studios; and production of PowerNation programs and content. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.