System1 (NYSE:SST – Get Free Report) and Ziff Davis (NASDAQ:ZD – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Valuation and Earnings
This table compares System1 and Ziff Davis”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| System1 | $266.13 million | 0.10 | -$65.35 million | ($11.31) | -0.23 |
| Ziff Davis | $1.45 billion | 1.29 | $47.35 million | $17.67 | 3.08 |
Risk and Volatility
System1 has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Ziff Davis has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
Institutional and Insider Ownership
87.5% of System1 shares are owned by institutional investors. Comparatively, 99.8% of Ziff Davis shares are owned by institutional investors. 10.2% of System1 shares are owned by insiders. Comparatively, 3.4% of Ziff Davis shares are owned by 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.
Profitability
This table compares System1 and Ziff Davis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| System1 | -50.66% | -439.90% | -19.35% |
| Ziff Davis | 48.57% | 10.73% | 5.54% |
Analyst Recommendations
This is a summary of recent recommendations for System1 and Ziff Davis, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| System1 | 1 | 0 | 1 | 0 | 2.00 |
| Ziff Davis | 0 | 6 | 3 | 0 | 2.33 |
System1 currently has a consensus price target of $6.50, indicating a potential upside of 149.04%. Ziff Davis has a consensus price target of $59.75, indicating a potential upside of 9.79%. Given System1’s higher possible upside, equities analysts clearly believe System1 is more favorable than Ziff Davis.
Summary
Ziff Davis beats System1 on 11 of the 14 factors compared between the two stocks.
About System1
System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.
About Ziff Davis
Ziff Davis, Inc., together with its subsidiaries, operates as a digital media and internet company in the United States and internationally. The company offers PCMag, an online resource for laboratory-based product reviews, technology news, buying guides, and research papers; Mashable for publishing technology and culture content; Spiceworks Ziff Davis provides digital content of IT products and services; retailMeNot, a savings destination platform; Offers.com, a coupon and deals website; and event-based properties, including BlackFriday.com, TheBlackFriday.com, BestBlackFriday.com, and DealsofAmerica.com. It also offers gaming and entertainment content under the IGN Entertainment and Humble Bundle brands; and information on internet connectivity under the Ookla, Ekahau, Downdetector, and RootMetrics brands. The company also offers digital content and information services for health and wellness consumers under the Everyday Health, DailyOM, Lose It!, Diabetes Daily, Castle Connolly, and Migraine Again brands; pregnancy and parenting content under the BabyCenter, Emma's Diary, and What to Expect brands; and Medpage Today that delivers medical news. In addition, the company offers PRIME Education, a medical education program for healthcare professionals; and Health eCareers, a digital portal for healthcare professionals. Further, it provides endpoint and email security, security awareness training, secure backup and file sharing, and virtual private network solutions under the IPVanish, VIPRE, Livedrive, Inspired eLearning, and SugarSync brands; and email marketing and delivery solutions, search engine optimization tools, and voice and text communication services under the Campaigner, iContact, SMTP, Kickbox, MOZ Pro, MOZ Local, Stat Analytics, eVoice, and Line2 brands. The company was formerly known as j2 Global, Inc. and changed its name to Ziff Davis, Inc. in October 2021. Ziff Davis, Inc. was incorporated in 2014 and is headquartered in New York, New York.
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