Head-To-Head Analysis: Tuya (NYSE:TUYA) and Marchex (NASDAQ:MCHX)

Marchex (NASDAQ:MCHX) and Tuya (NYSE:TUYA) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marchex	$43.98 million	1.30	-$5.24 million	($0.12)	-10.72
Tuya	$340.79 million	2.56	$57.89 million	$0.11	14.59

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

Dividends

Marchex pays an annual dividend of $0.08 per share and has a dividend yield of 6.2%. Tuya pays an annual dividend of $0.04 per share and has a dividend yield of 2.5%. Marchex pays out -66.7% of its earnings in the form of a dividend. Tuya pays out 36.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Marchex is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Marchex has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, Tuya has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Institutional & Insider Ownership

73.5% of Marchex shares are held by institutional investors. Comparatively, 11.5% of Tuya shares are held by institutional investors. 23.5% of Marchex shares are held by insiders. Comparatively, 2.1% of Tuya shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marchex	-12.44%	-18.25%	-13.94%
Tuya	20.16%	6.74%	5.96%

Analyst Recommendations

This is a breakdown of current recommendations for Marchex and Tuya, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marchex	1	1	0	0	1.50
Tuya	0	1	1	0	2.50

Tuya has a consensus price target of $3.69, suggesting a potential upside of 129.91%. Given Tuya’s stronger consensus rating and higher probable upside, analysts plainly believe Tuya is more favorable than Marchex.

Summary

Tuya beats Marchex on 11 of the 16 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 Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.