Analyzing Suggestion Box (OTCMKTS:SGTB) & Marchex (NASDAQ:MCHX)

Marchex (NASDAQ:MCHX) and Suggestion Box (OTCMKTS:SGTB) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a summary of recent recommendations for Marchex and Suggestion Box, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marchex	1	1	0	0	1.50
Suggestion Box	0	0	0	0	0.00

Profitability

This table compares Marchex and Suggestion Box’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marchex	-10.38%	-13.57%	-10.40%
Suggestion Box	N/A	N/A	N/A

Insider and Institutional Ownership

73.5% of Marchex shares are owned by institutional investors. 23.5% of Marchex shares are owned by insiders. Comparatively, 8.6% of Suggestion Box 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.

Valuation and Earnings

This table compares Marchex and Suggestion Box”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marchex	$48.12 million	1.32	-$4.95 million	($0.11)	-13.04
Suggestion Box	N/A	N/A	-$10,000.00	N/A	N/A

Suggestion Box has lower revenue, but higher earnings than Marchex.

Volatility & Risk

Marchex has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500. Comparatively, Suggestion Box has a beta of -0.27, indicating that its share price is 127% less volatile than the S&P 500.

Summary

Marchex beats Suggestion Box on 5 of the 9 factors compared between the two stocks.

About Marchex

Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.

About Suggestion Box

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.