Contrasting MediaAlpha (NYSE:MAX) & MJ (OTCMKTS:MJNE)

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

Volatility & Risk

MediaAlpha has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, MJ has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MediaAlpha	-7.76%	N/A	-21.56%
MJ	N/A	N/A	N/A

Earnings & Valuation

This table compares MediaAlpha and MJ’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MediaAlpha	$388.15 million	2.37	-$40.42 million	($0.68)	-20.56
MJ	$360,000.00	0.00	-$5.38 million	N/A	N/A

MJ has lower revenue, but higher earnings than MediaAlpha.

Insider and Institutional Ownership

64.4% of MediaAlpha shares are held by institutional investors. 11.5% of MediaAlpha shares are held by insiders. Comparatively, 35.9% of MJ shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MediaAlpha and MJ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MediaAlpha	1	1	5	0	2.57
MJ	0	0	0	0	N/A

MediaAlpha presently has a consensus target price of $22.43, suggesting a potential upside of 60.43%.

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 MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.