Review of System1 (NYSE:SST) and Outbrain (NASDAQ:OB)
System1 (NYSE:SST – Get Rating) and Outbrain (NASDAQ:OB – Get Rating) are both small cap business services companies, but which company is superior? We’ll compare the two companies based on their risk strength, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Profitability
This table compares the net margins, return on equity and return on assets of System1 and Outbrain.
| Net margins | Return on equity | return on assets | |
| System1 | N / A | -39.62% | -7.99% |
| Outbrain | -0.16% | 10.87% | 2.77% |
Institutional and Insider Ownership
23.2% of Outbrain’s shares are held by institutional investors. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock will outperform the market over the long term.
Valuation and benefits
This table compares gross revenue, earnings per share (EPS), and valuation of System1 and Outbrain.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| System1 | N / A | N / A | $21.03 million | N / A | N / A |
| Outbrain | $1.02 billion | 0.29 | $10.99 million | ($0.30) | -16.90 |
System1 has higher earnings, but lower earnings than Outbrain.
Analyst Notes
This is a summary of recent valuations and price targets for System1 and Outbrain, as reported by MarketBeat.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| System1 | 0 | 1 | 0 | 0 | 2.00 |
| Outbrain | 0 | 0 | 3 | 0 | 3.00 |
System1 currently has a consensus target price of $20.00, suggesting a potential upside of 180.11%. Outbrain has a consensus target price of $17.33, suggesting a potential upside of 241.88%. Given Outbrain’s stronger consensus rating and higher possible upside, analysts clearly believe that Outbrain is more favorable than System1.
Summary
Outbrain beats System1 on 7 of the 9 factors compared between the two stocks.
System1 Company Profile (Get an assessment)
System1, Inc. develops the technology and data science to operate a responsive acquisition marketing platform. The company also operates a real-time coupon code search engine and directory that offers coupon destinations for online shoppers. It serves clients in healthcare, subscription, finance, insurance, business and technology, travel, automotive and other direct-to-consumer businesses. The company was founded in 2013 and is based in Los Angeles, California.
Outbrain Company Profile (Get an assessment)
Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including the content, formats, sources, frequency and categories of ads served on their properties, as well as monetize content through personalized data. driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also gives advertisers access to ad inventory that supports a variety of formats, including text and image, video, interactive carousel, app install and other forms. direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.
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