XO Group (NYSE: XOXO) and Millennial Media (NYSE:MM) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitabiliy, dividends and risk.
Earnings & Valuation
This table compares XO Group and Millennial Media’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| XO Group | $152.21 million | 3.06 | $16.38 million | $0.36 | 51.00 |
| Millennial Media | N/A | N/A | N/A | N/A | N/A |
XO Group has higher revenue and earnings than Millennial Media.
Profitability
This table compares XO Group and Millennial Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| XO Group | 6.18% | 5.24% | 4.34% |
| Millennial Media | -23.47% | -26.25% | -19.24% |
Analyst Ratings
This is a summary of current ratings for XO Group and Millennial Media, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| XO Group | 0 | 2 | 4 | 0 | 2.67 |
| Millennial Media | 0 | 0 | 0 | 0 | N/A |
XO Group currently has a consensus price target of $20.21, suggesting a potential upside of 10.07%. Given XO Group’s higher possible upside, equities research analysts plainly believe XO Group is more favorable than Millennial Media.
Insider & Institutional Ownership
83.8% of XO Group shares are owned by institutional investors. 5.6% of XO Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
XO Group beats Millennial Media on 8 of the 8 factors compared between the two stocks.
About XO Group
XO Group Inc. is engaged in providing content and marketing solutions, targeted advertising programs, transactions and merchandise. The Company’s multi-platform brands guide couples through transformative life stages from getting married with The Knot, to moving in together with The Nest, to having a baby with The Bump, and helping bring celebrations to life with entertainment vendors from GigMasters.com Incorporated (GigMasters). The Knot is the wedding resource and marketplace that engages, matches and connects couples. The Bump is a pregnancy and parenting brand, providing personalized information, content and tools. The Nest is a brand focused on nesters setting up homes and navigating their lives together. GigMasters is an event marketplace for finding and booking the entertainment and vendors for birthday parties, weddings, anniversaries and corporate events, among others. The Company’s product offerings include Online Media Advertising, Transactions, and Publishing and Other.
About Millennial Media
Millennial Media, Inc. is an independent mobile advertising marketplace delivering products and services to advertisers and developers. The Company offers advertisers a suite of solutions that allow them to reach and connect with the target audiences across screens, from smartphones, tablets and other mobile devices to PCs. The Company offers developers the ability to maximize the advertising revenue and acquire new users for apps. Its advertiser and developer solutions support all mobile operating systems, including Apple iOS, Android, Windows Phone and BlackBerry. For clients who want a higher degree of customer service, the Company offers its managed media services with dedicated account teams. For its clients who want to interact with it on a more automated basis, the Company offers tools that allow advertisers to buy its ad supply in a programmatic fashion through its ad exchange and developers the opportunity to manage and monetize the ad inventory through its supply side tool.
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