Comparing MediaAlpha (NYSE:MAX) and ITEX (OTCMKTS:ITEX)

ITEX (OTCMKTS:ITEX) and MediaAlpha (NYSE:MAX) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ITEX	N/A	N/A	N/A
MediaAlpha	-2.69%	N/A	-8.37%

Volatility & Risk

ITEX has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

64.4% of MediaAlpha shares are owned by institutional investors. 32.0% of ITEX shares are owned by insiders. Comparatively, 11.5% of MediaAlpha 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ITEX and MediaAlpha, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITEX	0	0	0	0	N/A
MediaAlpha	0	1	6	0	2.86

MediaAlpha has a consensus price target of $24.29, suggesting a potential upside of 25.77%. Given MediaAlpha’s higher probable upside, analysts plainly believe MediaAlpha is more favorable than ITEX.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITEX	N/A	N/A	N/A	N/A	N/A
MediaAlpha	$496.67 million	2.56	-$40.42 million	($0.68)	-28.40

ITEX has higher earnings, but lower revenue than MediaAlpha.

Summary

MediaAlpha beats ITEX on 5 of the 8 factors compared between the two stocks.

About ITEX

ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company’s marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.

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.