Critical Survey: Digital Media Solutions (NYSE:DMS) & Kuboo (OTCMKTS:SGTB)

Digital Media Solutions (NYSE:DMSGet Rating) and Kuboo (OTCMKTS:SGTBGet Rating) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Insider & Institutional Ownership

2.3% of Digital Media Solutions shares are owned by institutional investors. 86.4% of Digital Media Solutions shares are owned by insiders. Comparatively, 8.6% of Kuboo shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Digital Media Solutions and Kuboo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Media Solutions 0 1 2 0 2.67
Kuboo 0 0 0 0 N/A

Digital Media Solutions presently has a consensus price target of $9.75, indicating a potential upside of 438.67%. Given Digital Media Solutions’ higher possible upside, equities research analysts plainly believe Digital Media Solutions is more favorable than Kuboo.

Valuation and Earnings

This table compares Digital Media Solutions and Kuboo’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digital Media Solutions $427.93 million 0.26 $2.20 million ($0.04) -45.25
Kuboo N/A N/A N/A N/A N/A

Digital Media Solutions has higher revenue and earnings than Kuboo.

Profitability

This table compares Digital Media Solutions and Kuboo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Media Solutions -0.28% -3.09% -2.30%
Kuboo N/A N/A N/A

Volatility & Risk

Digital Media Solutions has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Kuboo has a beta of -0.54, suggesting that its stock price is 154% less volatile than the S&P 500.

Summary

Digital Media Solutions beats Kuboo on 6 of the 9 factors compared between the two stocks.

Digital Media Solutions Company Profile (Get Rating)

Digital Media Solutions, Inc. operates as a digital performance marketing company that offers a software delivery platform in the United States. It operates through three segments: Brand Direct, Marketplace, and Other. The company operates as a performance marketing engine for companies across various industries, including consumer finance, e-commerce, education, insurance, home services, brand performance, automotive, gig, health and wellness, and career placements. It also provides managed services that help clients to access and control the advertising expenses; and marketing automation software as a service to clients. The company was founded in 2012 and is headquartered in Clearwater, Florida.

Kuboo Company Profile (Get Rating)

Kuboo, Inc., doing business as Safe Communications, Inc., provides open and secure family communications. It operates a child safe virtual world that offers games, edutainment, controlled chat, and multiple channels online streaming in one platform. The company was founded in 2004 and is based in Scottsdale, Arizona.

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