Financial Analysis: Suggestion Box (OTCMKTS:SGTB) vs. Marchex (NASDAQ:MCHX)

Suggestion Box (OTCMKTS:SGTB) and Marchex (NASDAQ:MCHX) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Suggestion Box has a beta of -0.27, indicating that its stock price is 127% less volatile than the S&P 500. Comparatively, Marchex has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500.

Insider and Institutional Ownership

73.5% of Marchex shares are held by institutional investors. 8.6% of Suggestion Box shares are held by company insiders. Comparatively, 23.5% of Marchex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Suggestion Box and Marchex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suggestion Box	0	0	0	0	0.00
Marchex	1	1	0	0	1.50

Profitability

This table compares Suggestion Box and Marchex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suggestion Box	N/A	N/A	N/A
Marchex	-10.38%	-13.57%	-10.40%

Valuation and Earnings

This table compares Suggestion Box and Marchex”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suggestion Box	N/A	N/A	-$10,000.00	N/A	N/A
Marchex	$48.12 million	1.32	-$4.95 million	($0.11)	-13.04

Suggestion Box has higher earnings, but lower revenue than Marchex.

Summary

Marchex beats Suggestion Box on 5 of the 9 factors compared between the two stocks.

About Suggestion Box

Kuboo, Inc., doing business as Safe Communications, Inc., provides open and secure family communications. It operates a child safe virtual world that offers games, edutainment, controlled chat, and multiple channels online streaming in one platform. The company was founded in 2004 and is based in Scottsdale, Arizona.

About Marchex

Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.