Contrasting TNL Mediagene (NASDAQ:TNMG) and Stagwell (NASDAQ:STGW)

TNL Mediagene (NASDAQ:TNMG) and Stagwell (NASDAQ:STGW) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Profitability

This table compares TNL Mediagene and Stagwell’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TNL Mediagene	N/A	N/A	N/A
Stagwell	-0.06%	14.54%	2.79%

Insider & Institutional Ownership

35.6% of Stagwell shares are owned by institutional investors. 41.0% of TNL Mediagene shares are owned by company insiders. Comparatively, 5.6% of Stagwell shares are owned by company 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.

Risk and Volatility

TNL Mediagene has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Stagwell has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Earnings and Valuation

This table compares TNL Mediagene and Stagwell”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TNL Mediagene	$49.67 million	0.17	-$85.00 million	N/A	N/A
Stagwell	$2.86 billion	0.46	$2.26 million	N/A	N/A

Stagwell has higher revenue and earnings than TNL Mediagene.

Analyst Ratings

This is a breakdown of recent ratings for TNL Mediagene and Stagwell, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TNL Mediagene	0	0	1	0	3.00
Stagwell	1	3	3	0	2.29

TNL Mediagene currently has a consensus target price of $3.50, indicating a potential upside of 977.92%. Stagwell has a consensus target price of $8.17, indicating a potential upside of 59.30%. Given TNL Mediagene’s stronger consensus rating and higher possible upside, research analysts clearly believe TNL Mediagene is more favorable than Stagwell.

Summary

Stagwell beats TNL Mediagene on 8 of the 12 factors compared between the two stocks.

About TNL Mediagene

TNL Mediagene engages in digital advertising, integrated marketing, marketing survey, artificial intelligence technology, data analysis, content service platform, and production of audio-visual programs. It operates media, technology, and digital studio businesses primarily in Japan and Taiwan. The company was founded on May 25, 2023 and is headquartered in Taipei, Taiwan.

About Stagwell

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.