MarketWise (NASDAQ:MKTW) & Amadeus IT Group (OTCMKTS:AMADY) Financial Review

Amadeus IT Group (OTCMKTS:AMADY) and MarketWise (NASDAQ:MKTW) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Earnings & Valuation

This table compares Amadeus IT Group and MarketWise”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amadeus IT Group	$7.37 billion	3.89	$1.51 billion	$3.39	18.77
MarketWise	$328.12 million	0.83	$5.62 million	$2.29	7.42

Amadeus IT Group has higher revenue and earnings than MarketWise. MarketWise is trading at a lower price-to-earnings ratio than Amadeus IT Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Amadeus IT Group and MarketWise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amadeus IT Group	20.45%	27.61%	12.16%
MarketWise	1.71%	-2.54%	2.58%

Dividends

Amadeus IT Group pays an annual dividend of $0.86 per share and has a dividend yield of 1.4%. MarketWise pays an annual dividend of $1.00 per share and has a dividend yield of 5.9%. Amadeus IT Group pays out 25.4% of its earnings in the form of a dividend. MarketWise pays out 43.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MarketWise has raised its dividend for 1 consecutive years. MarketWise is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

23.0% of MarketWise shares are owned by institutional investors. 29.3% of MarketWise shares are owned 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 and Risk

Amadeus IT Group has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, MarketWise has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Amadeus IT Group and MarketWise, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amadeus IT Group	0	2	1	1	2.75
MarketWise	1	0	1	0	2.00

MarketWise has a consensus target price of $20.00, suggesting a potential upside of 17.65%. Given MarketWise’s higher probable upside, analysts clearly believe MarketWise is more favorable than Amadeus IT Group.

Summary

Amadeus IT Group beats MarketWise on 12 of the 17 factors compared between the two stocks.

About Amadeus IT Group

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through three segments: Air Distribution, Air IT Solutions, and Hospitality & Other Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services, and other processing solutions through Amadeus GDS, Altéa PSS, and New Skies platforms. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, software distribution, regional support, data processing, intermediation, computer consulting, installation of industrial machinery and equipment, consultancy and technology development services for payments, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, land and sea transport companies, travel sellers and brokers, and travel buyers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.

About MarketWise

MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.