Angi (NASDAQ:ANGI) vs. MediaAlpha (NYSE:MAX) Head to Head Review

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

Profitability

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

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

Institutional and Insider Ownership

64.4% of MediaAlpha shares are held by institutional investors. Comparatively, 12.8% of Angi shares are held by institutional investors. 14.6% of MediaAlpha shares are held by company insiders. Comparatively, 3.3% of Angi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MediaAlpha	0	4	3	2	2.78
Angi	2	6	2	0	2.00

MediaAlpha presently has a consensus target price of $14.29, suggesting a potential upside of 51.89%. Angi has a consensus target price of $10.57, suggesting a potential upside of 100.03%. Given Angi’s higher probable upside, analysts clearly believe Angi is more favorable than MediaAlpha.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MediaAlpha	$1.11 billion	0.52	$25.62 million	$1.62	5.81
Angi	$992.55 million	0.22	$43.83 million	($5.52)	-0.96

Angi has lower revenue, but higher earnings 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.

Volatility and Risk

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

Summary

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

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.

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.