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

Institutional & Insider Ownership

0.9% of Chinanet Online shares are held by institutional investors. Comparatively, 80.9% of Cardlytics shares are held by institutional investors. 35.8% of Chinanet Online shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Chinanet Online and Cardlytics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chinanet Online 0 0 0 0 N/A
Cardlytics 0 0 7 0 3.00

Cardlytics has a consensus price target of $23.17, suggesting a potential upside of 57.06%. Given Cardlytics’ higher possible upside, analysts clearly believe Cardlytics is more favorable than Chinanet Online.

Volatility and Risk

Chinanet Online has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Cardlytics has a beta of 3.62, meaning that its share price is 262% more volatile than the S&P 500.

Valuation & Earnings

This table compares Chinanet Online and Cardlytics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chinanet Online $57.15 million 0.44 -$10.12 million N/A N/A
Cardlytics $150.68 million 1.98 -$53.04 million ($2.14) -6.89

Chinanet Online has higher earnings, but lower revenue than Cardlytics.

Profitability

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

Net Margins Return on Equity Return on Assets
Chinanet Online -30.37% -71.31% -41.31%
Cardlytics -35.20% -92.07% -28.17%

Summary

Cardlytics beats Chinanet Online on 7 of the 11 factors compared between the two stocks.

Chinanet Online Company Profile

ChinaNet Online Holdings, Inc., through its subsidiaries, operates an integrated service platform that provides advertising and marketing services in the People's Republic of China. Its platform comprises CloundX, an omni-channel advertising and marketing system; and a data analysis management system. The company offers Internet advertising, precision marketing, and related data and value added services through its Internet advertising portals, including 28.com; and liansuo.com. It also produces and distributes television shows comprising advertisements. The company serves customers in the food and beverage, women accessories, footwear, apparel and garments, home goods and construction materials, environmental protection equipment, cosmetic and health care, education network, and other industries. ChinaNet Online Holdings, Inc. was founded in 2003 and is based in Beijing, the People's Republic of China.

Cardlytics Company Profile

Cardlytics, Inc. operates a purchase intelligence platform in the United States and the United Kingdom. It operates in two segments, Cardlytics Direct and Other Platform Solutions. The company's platform is the Cardlytics Direct solution, a proprietary native bank advertising channel that enables marketers to reach consumers through their trusted and frequently visited online and mobile banking channels. It also provides solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence outside the banking channel. The company was founded in 2008 and is headquartered in Atlanta, Georgia.

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