Comparing Teads (NASDAQ:TEAD) and 36Kr (NASDAQ:KRKR)

36Kr (NASDAQ:KRKR) and Teads (NASDAQ:TEAD) are both small-cap communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Profitability

This table compares 36Kr and Teads’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
36Kr	N/A	N/A	N/A
Teads	-43.32%	-49.37%	-6.14%

Volatility & Risk

36Kr has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Teads has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.

Valuation & Earnings

This table compares 36Kr and Teads”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
36Kr	$32.59 million	0.18	$1.55 million	($2.40)	-1.23
Teads	$1.30 billion	0.03	-$517.07 million	($5.53)	-0.07

36Kr has higher earnings, but lower revenue than Teads. 36Kr is trading at a lower price-to-earnings ratio than Teads, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for 36Kr and Teads, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
36Kr	1	0	0	0	1.00
Teads	1	2	1	0	2.00

Teads has a consensus price target of $1.00, suggesting a potential upside of 143.90%. Given Teads’ stronger consensus rating and higher possible upside, analysts plainly believe Teads is more favorable than 36Kr.

Insider and Institutional Ownership

0.1% of 36Kr shares are owned by institutional investors. Comparatively, 60.4% of Teads shares are owned by institutional investors. 39.4% of 36Kr shares are owned by insiders. Comparatively, 12.0% of Teads shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

About 36Kr

36Kr Holdings Inc. provides content and business services in the People's Republic of China. It creates and distributes various content, including insightful reports on companies and industries, timely market updates, thought-provoking editorials, and commentaries, as well as original video and audio content in various industries, such as technology, consumer, retail, healthcare, media and entertainment, and enterprise services. The company's business services include online advertising services; enterprise value-added services, such as integrated marketing, advertisement agent, online/offline event, and consulting services; and subscription services to individuals, institutional investors, and enterprises. 36Kr Holdings Inc. was founded in 2010 and is headquartered in Beijing, the People's Republic of China.

About Teads

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 content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.