Financial Survey: Thumzup Media (NASDAQ:TZUP) vs. Stagwell (NASDAQ:STGW)

Thumzup Media (NASDAQ:TZUP) and Stagwell (NASDAQ:STGW) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Thumzup Media and Stagwell, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thumzup Media	1	0	0	0	1.00
Stagwell	1	3	3	0	2.29

Stagwell has a consensus price target of $8.15, suggesting a potential upside of 69.09%. Given Stagwell’s stronger consensus rating and higher probable upside, analysts plainly believe Stagwell is more favorable than Thumzup Media.

Valuation and Earnings

This table compares Thumzup Media and Stagwell”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thumzup Media	N/A	N/A	-$4.00 million	($0.73)	-6.07
Stagwell	$2.89 billion	0.43	$2.26 million	$0.06	80.33

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

Profitability

This table compares Thumzup Media and Stagwell’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thumzup Media	N/A	-270.42%	-228.96%
Stagwell	-0.06%	14.54%	2.79%

Insider and Institutional Ownership

35.6% of Stagwell shares are owned by institutional investors. 43.5% of Thumzup Media shares are owned by insiders. Comparatively, 5.6% of Stagwell shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Stagwell beats Thumzup Media on 10 of the 12 factors compared between the two stocks.

About Thumzup Media

Thumzup Media Corporation is a provider of social media branding and marketing solutions which allow businesses and brands to pay customers and fans cash through Venmo and PayPal for their posts on social media. Thumzup Media Corporation is based in Los Angeles, CA.

About Stagwell

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.