Analyzing Marchex (MCHX) and Clear Channel Outdoor Holdings (CCO)

Marchex (NASDAQ: MCHX) and Clear Channel Outdoor Holdings (NYSE:CCO) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitabiliy, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

52.0% of Marchex shares are held by institutional investors. Comparatively, 9.2% of Clear Channel Outdoor Holdings shares are held by institutional investors. 31.3% of Marchex shares are held by insiders. Comparatively, 4.2% of Clear Channel Outdoor Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Marchex has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Clear Channel Outdoor Holdings has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Marchex and Clear Channel Outdoor Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marchex 0 1 0 0 2.00
Clear Channel Outdoor Holdings 0 3 0 0 2.00

Marchex currently has a consensus target price of $3.00, suggesting a potential upside of 3.81%. Clear Channel Outdoor Holdings has a consensus target price of $8.42, suggesting a potential upside of 98.04%. Given Clear Channel Outdoor Holdings’ higher probable upside, analysts plainly believe Clear Channel Outdoor Holdings is more favorable than Marchex.

Profitability

This table compares Marchex and Clear Channel Outdoor Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marchex -71.14% -13.17% -11.58%
Clear Channel Outdoor Holdings -1.04% -14.75% -0.49%

Valuation & Earnings

This table compares Marchex and Clear Channel Outdoor Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marchex $117.94 million 1.03 -$16.06 million ($2.01) -1.44
Clear Channel Outdoor Holdings $2.66 billion 0.58 $629.65 million ($0.08) -53.13

Clear Channel Outdoor Holdings has higher revenue and earnings than Marchex. Clear Channel Outdoor Holdings is trading at a lower price-to-earnings ratio than Marchex, indicating that it is currently the more affordable of the two stocks.

Summary

Clear Channel Outdoor Holdings beats Marchex on 7 of the 11 factors compared between the two stocks.

Marchex Company Profile

Marchex, Inc. is a mobile advertising analytics company. The Company offers products and services for enterprises that depend on consumer phone calls to drive sales. Its media analytics products can provide actionable intelligence on media channels advertisers use to acquire customers over the phone. Its Marchex Omnichannel Analytics Cloud helps marketers connect customer conversions driven from paid media channels, including search, display and video, social and sites, to phone calls made to a business. Its product offerings include Marchex Call Analytics, Marchex Search Analytics, Marchex Display and Video Analytics, Marchex Social Analytics, Marchex Call Marketplace and Local Leads. Its Local Leads platform is a white-labeled, full service advertising solution for small business resellers, such as Yellow Pages providers and vertical marketing service providers, to sell call advertising, search marketing and other lead generation products.

Clear Channel Outdoor Holdings Company Profile

Clear Channel Outdoor Holdings, Inc. is an outdoor advertising company. The Company provides clients with advertising opportunities through billboards, street furniture displays, transit displays and other out-of-home advertising displays, such as wallscapes and spectaculars. Its segments include Americas outdoor advertising (Americas) and International outdoor advertising (International). The Americas segment consists of operations primarily in the United States, Canada and Latin America. Its Americas assets consist of printed and digital billboards, street furniture and transit displays, airport displays and wallscapes and other spectaculars, which the Company owns or operates under lease management agreements. International segment primarily includes operations in Europe and Asia. The International assets consist of street furniture and transit displays, billboards, mall displays, Smartbike programs, and other spectaculars, which the Company owns or operates under lease agreements.

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