MediaAlpha (NYSE:MAX) and Angi (NASDAQ:ANGI) Critical Analysis

Angi (NASDAQ:ANGI) and MediaAlpha (NYSE:MAX) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Profitability

This table compares Angi and MediaAlpha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angi	-22.35%	1.52%	0.84%
MediaAlpha	7.94%	-301.42%	28.23%

Analyst Ratings

This is a summary of current recommendations and price targets for Angi and MediaAlpha, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angi	2	6	2	0	2.00
MediaAlpha	0	5	3	1	2.56

Angi currently has a consensus target price of $9.29, indicating a potential upside of 67.61%. MediaAlpha has a consensus target price of $14.29, indicating a potential upside of 43.27%. Given Angi’s higher possible upside, analysts clearly believe Angi is more favorable than MediaAlpha.

Insider and Institutional Ownership

12.8% of Angi shares are held by institutional investors. Comparatively, 64.4% of MediaAlpha shares are held by institutional investors. 3.3% of Angi shares are held by insiders. Comparatively, 14.6% of MediaAlpha shares are held 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.

Volatility & Risk

Angi has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Valuation & Earnings

This table compares Angi and MediaAlpha”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angi	$1.03 billion	0.22	$43.83 million	($5.52)	-1.00
MediaAlpha	$1.11 billion	0.55	$25.62 million	$1.62	6.15

Angi has higher earnings, but lower revenue than MediaAlpha. Angi is trading at a lower price-to-earnings ratio than MediaAlpha, indicating that it is currently the more affordable of the two stocks.

Summary

MediaAlpha beats Angi on 11 of the 15 factors compared between the two stocks.

About Angi

Angi Inc. connects home service professionals with consumers in the United States and internationally. The company operates through three segments: Ads and Leads, Services, and International. It provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, matches consumers with independently established home services professionals. The company's Ads and Leads segment connects consumers with service professionals for local services through nationwide network of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, mobile, and magazine advertising to certified service professionals, as well as services and tools, including quoting, invoicing, and payment services. This segment provides consumers access to online True Cost Guide, which provides project cost information for various project types, as well as a library of home services-related content. Its Services segment offers a pre-priced offering, pursuant to which consumers can request services through Angi and Handy branded platforms and pay for such services on the applicable platform directly; and provides professionals with access to a pool of consumers seeking service professionals and must validate their home services experience, as well as attest to holding the requisite license(s) and maintain an acceptable rating to remain on Services platforms. The company's International segment operates Travaux, MyBuilder, MyHammer, Werkspo, and Homestars home services marketplaces. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. operates as a subsidiary of IAC Inc.

About MediaAlpha

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.