Comparing MediaAlpha (NYSE:MAX) and ITEX (OTCMKTS:ITEX)
by Kim Johansen · The Markets DailyITEX (OTCMKTS:ITEX – Get Free Report) and MediaAlpha (NYSE:MAX – Get Free Report) 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.