ModusLink Global Solutions (NASDAQ: MLNK) and Acxiom Corporation (NASDAQ:ACXM) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
This is a summary of recent recommendations for ModusLink Global Solutions and Acxiom Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ModusLink Global Solutions||0||1||0||0||2.00|
ModusLink Global Solutions currently has a consensus target price of $8.00, suggesting a potential upside of 409.55%. Acxiom Corporation has a consensus target price of $33.25, suggesting a potential upside of 40.83%. Given ModusLink Global Solutions’ higher possible upside, equities research analysts plainly believe ModusLink Global Solutions is more favorable than Acxiom Corporation.
Institutional and Insider Ownership
56.5% of ModusLink Global Solutions shares are owned by institutional investors. Comparatively, 95.2% of Acxiom Corporation shares are owned by institutional investors. 1.3% of ModusLink Global Solutions shares are owned by company insiders. Comparatively, 3.5% of Acxiom Corporation shares are owned 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
ModusLink Global Solutions has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Acxiom Corporation has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
Valuation and Earnings
This table compares ModusLink Global Solutions and Acxiom Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ModusLink Global Solutions||$438.35 million||0.20||-$11.07 million||($0.68)||-2.31|
|Acxiom Corporation||$877.96 million||2.14||$77.93 million||($0.02)||-1,179.91|
Acxiom Corporation has higher revenue and earnings than ModusLink Global Solutions. Acxiom Corporation is trading at a lower price-to-earnings ratio than ModusLink Global Solutions, indicating that it is currently the more affordable of the two stocks.
This table compares ModusLink Global Solutions and Acxiom Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ModusLink Global Solutions||-8.26%||-47.50%||-11.12%|
Acxiom Corporation beats ModusLink Global Solutions on 12 of the 13 factors compared between the two stocks.
ModusLink Global Solutions Company Profile
ModusLink Global Solutions, Inc. is a provider of supply chain and logistics services through its subsidiaries, ModusLink Corporation and ModusLink PTS, Inc. The Company provides services to companies in the consumer electronics, communications, computing, software, storage and retail industries. The Company operates through four segments: Americas, Asia, Europe and e-business. As of July 31, 2016, the Company operated in over 20 sites across North America, Europe and the Asia Pacific region. The Company’s Supply Chain Business operation’s solutions include material planning and factory supply; value-added warehousing and distribution; aftermarket services, including product returns management and product repair and recovery, and e-business, including e-commerce, contact center, entitlement management and financial management.
Acxiom Corporation Company Profile
Acxiom Corporation (Acxiom) is a technology and enablement services company. The Company operates through three business segments: Marketing Services, Audience Solutions, and Connectivity. The Company’s Marketing Services segment helps clients to unify data at individual level. The Audience Solutions segment helps clients to validate the accuracy of their people-based data, enhance it with additional insight and keep it up to date, enabling clients to reach desired audiences with relevant messages. The Connectivity segment activates data and makes it portable across the open marketing ecosystem. The Company serves a global client base from locations in the United States, Europe and the Asia-Pacific region. The Company’s client base includes organizations in these regions across industry verticals, including financial, insurance and investment services, automotive, retail, telecommunications, healthcare, travel, entertainment, non-profit and government.
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