Financial Analysis: System1 (NYSE:SST) versus Dalton Industries (OTCMKTS:UMGP)

System1 (NYSE:SSTGet Free Report) and Dalton Industries (OTCMKTS:UMGPGet Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Profitability

This table compares System1 and Dalton Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
System1 -22.78% -109.87% -15.60%
Dalton Industries N/A N/A N/A

Earnings and Valuation

This table compares System1 and Dalton Industries”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
System1 $343.92 million 0.13 -$74.67 million ($8.53) -0.55
Dalton Industries $30,000.00 139.09 -$260,000.00 ($0.01) -11.34

Dalton Industries has lower revenue, but higher earnings than System1. Dalton Industries is trading at a lower price-to-earnings ratio than System1, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for System1 and Dalton Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
System1 1 0 1 0 2.00
Dalton Industries 0 0 0 0 0.00

System1 currently has a consensus price target of $10.00, suggesting a potential upside of 114.59%. Given System1’s stronger consensus rating and higher probable upside, research analysts clearly believe System1 is more favorable than Dalton Industries.

Institutional & Insider Ownership

87.5% of System1 shares are held by institutional investors. 13.2% of System1 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

System1 has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Dalton Industries has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Summary

System1 beats Dalton Industries on 8 of the 14 factors compared between the two stocks.

About System1

(Get Free Report)

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.

About Dalton Industries

(Get Free Report)

Universal Media Group Inc., a media company, produces and distributes media content worldwide. It produces On The Mike, a TV show that primarily include celebrity interviews, music concerts, and other events. The company was formerly known as Dalton Industries Inc. and changed its name to Universal Media Group Inc. in January 2016. Universal Media Group Inc. was founded in 1971 and is based in Boca Raton, Florida.

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