Contrasting Remark (NASDAQ:MARK) & Global Eagle Entertainment (OTCMKTS:GEENQ)

Global Eagle Entertainment (OTCMKTS:GEENQ) and Remark (NASDAQ:MARK) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Global Eagle Entertainment and Remark, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Eagle Entertainment 0 0 0 0 N/A
Remark 0 0 1 0 3.00

Remark has a consensus target price of $4.25, indicating a potential upside of 123.68%. Given Remark’s higher possible upside, analysts clearly believe Remark is more favorable than Global Eagle Entertainment.

Risk and Volatility

Global Eagle Entertainment has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, Remark has a beta of 3.29, indicating that its stock price is 229% more volatile than the S&P 500.

Insider & Institutional Ownership

9.6% of Remark shares are owned by institutional investors. 12.1% of Global Eagle Entertainment shares are owned by insiders. Comparatively, 11.0% of Remark 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 Global Eagle Entertainment and Remark’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Eagle Entertainment -38.63% N/A -33.93%
Remark -299.36% N/A -110.49%

Earnings & Valuation

This table compares Global Eagle Entertainment and Remark’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Eagle Entertainment $656.88 million 0.00 -$153.44 million ($41.50) -0.01
Remark $5.02 million 37.66 -$25.61 million ($0.52) -3.65

Remark has lower revenue, but higher earnings than Global Eagle Entertainment. Remark is trading at a lower price-to-earnings ratio than Global Eagle Entertainment, indicating that it is currently the more affordable of the two stocks.

Summary

Remark beats Global Eagle Entertainment on 7 of the 12 factors compared between the two stocks.

About Global Eagle Entertainment

Global Eagle Entertainment Inc. provides media and satellite-based connectivity solutions worldwide. The company operates in two segments, Media & Content and Connectivity. The Media & Content buys, produces, manages, distributes, and provides wholly-owned and licensed media content, video and music programming, advertising, applications, and video games, as well as post-production services for and to the airline, maritime, and other away-from-home non-theatrical markets. This segment also offers value-added services, such as selection, purchase, production, customer support, software development, creative services, and technical editing and curating of media content in connection with the integration and servicing of entertainment programs, as well as sourcing of advertising from agencies and directly from brands. The Connectivity segment provides satellite-based connectivity services to enterprise and government customers in the aviation, maritime, and land markets. This segment offers satellite-based Internet access, streaming and broadcast live television, on-demand content, and texting services, as well as games, e-commerce, travel-related information, and backhaul solutions. It also sells and leases equipment that enables satellite-based services to operate on aircraft; and connectivity-enabled solutions for advertising, operational performance management, and analytics. The company was founded in 2004 and is headquartered in Los Angeles, California. On July 22, 2020, Global Eagle Entertainment Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About Remark

Remark Holdings, Inc., technology-focused company, develops and deploys artificial intelligence (AI) products and AI-based solutions for businesses in various industries worldwide. The company operates KanKan, a data intelligence platform that offers AI-based vision products, computing devices, and software-as-a-service products for the retail, life cycle, and workplace and food safety industries. It also owns and operates Sharecare, a web-based platform that facilitates search for health and wellness information; and Bikini.com, an e-commerce website, which sells swimwear and accessories. The company was formerly known as Remark Media, Inc. and changed its name to Remark Holdings, Inc. in April 2017. Remark Holdings, Inc. was founded in 2006 and is headquartered in Las Vegas, Nevada.

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