Datatec (OTCMKTS:DTTLY) versus Cardlytics (NASDAQ:CDLX) Critical Review

Datatec (OTCMKTS:DTTLY) and Cardlytics (NASDAQ:CDLX) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Datatec and Cardlytics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Datatec	N/A	N/A	N/A
Cardlytics	-44.12%	-235.70%	-31.31%

Earnings & Valuation

This table compares Datatec and Cardlytics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Datatec	$3.64 billion	0.30	$59.18 million	N/A	N/A
Cardlytics	$278.30 million	0.22	-$189.30 million	($2.11)	-0.53

Datatec has higher revenue and earnings than Cardlytics.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Datatec and Cardlytics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datatec	0	0	0	0	0.00
Cardlytics	1	3	0	0	1.75

Cardlytics has a consensus target price of $2.25, suggesting a potential upside of 100.89%. Given Cardlytics’ stronger consensus rating and higher possible upside, analysts clearly believe Cardlytics is more favorable than Datatec.

Risk & Volatility

Datatec has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Cardlytics has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Insider and Institutional Ownership

68.1% of Cardlytics shares are owned by institutional investors. 4.4% of Cardlytics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Datatec beats Cardlytics on 6 of the 11 factors compared between the two stocks.

About Datatec

Datatec Limited, together with its subsidiaries, provides information and communication technology (ICT) solutions and services worldwide. It operates in four segments: Westcon International, Logicalis International, Logicalis Latin America, and Corporate and Management Consulting. The company distributes cyber security, network infrastructure, unified collaboration products, data centre solutions, and channel services; and offers financing/leasing solutions for ICT customers. It offers solutions through a network of service providers, systems integrators, and specialty resellers under the Westcon and Comstor brands. The company also provides digital services; and strategic, trusted advisory, modeling, and market intelligence services to the telecoms, media, and technology industries. Datatec Limited was founded in 1986 and is headquartered in Sandown, South Africa.

About Cardlytics

Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.