Reviewing Locafy (NASDAQ:LCFY) and Banzai International (NASDAQ:BNZI)

Banzai International (NASDAQ:BNZI) and Locafy (NASDAQ:LCFY) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Risk & Volatility

Banzai International has a beta of -1, suggesting that its stock price is 200% less volatile than the S&P 500. Comparatively, Locafy has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Banzai International and Locafy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banzai International	1	0	2	0	2.33
Locafy	1	0	0	0	1.00

Banzai International presently has a consensus price target of $42.00, indicating a potential upside of 2,098.95%. Given Banzai International’s stronger consensus rating and higher possible upside, analysts plainly believe Banzai International is more favorable than Locafy.

Valuation & Earnings

This table compares Banzai International and Locafy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banzai International	$11.48 million	0.24	-$22.49 million	($110.47)	-0.02
Locafy	$2.07 million	2.75	-$2.79 million	($0.89)	-2.86

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

Profitability

This table compares Banzai International and Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banzai International	-237.54%	-391.73%	-74.14%
Locafy	N/A	N/A	N/A

Insider and Institutional Ownership

96.8% of Banzai International shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 2.8% of Banzai International shares are held by insiders. Comparatively, 28.7% of Locafy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Locafy beats Banzai International on 8 of the 14 factors compared between the two stocks.

About Banzai International

Banzai International, Inc., a marketing technology company, provides data-driven marketing and sales solutions for various businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its products include Demio, a browser-based webinar platform with data and marketing features designed to help businesses engage with their audience through live events and on-demand, interactive video content; Boost, a software-as-a-service (SaaS) solution for social sharing by event registrants; and Reach, a SaaS and managed service to increase registration and attendance of marketing events. The company serves healthcare, financial services, e-commerce, technology, media, and other industries. Banzai International, Inc. was founded in 2015 and is based in Bainbridge Island, Washington.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.