Kubient (NASDAQ:KBNT) and ECARX (NASDAQ:ECX) Critical Review

Kubient (NASDAQ:KBNT) and ECARX (NASDAQ:ECX) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Profitability

This table compares Kubient and ECARX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kubient	N/A	N/A	N/A
ECARX	-20.03%	N/A	-23.13%

Institutional and Insider Ownership

13.9% of Kubient shares are held by institutional investors. 22.3% of Kubient shares are held by insiders. Comparatively, 20.0% of ECARX shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Kubient and ECARX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kubient	0	0	0	0	N/A
ECARX	0	0	1	0	3.00

ECARX has a consensus price target of $10.00, indicating a potential upside of 506.06%. Given ECARX’s higher possible upside, analysts clearly believe ECARX is more favorable than Kubient.

Volatility & Risk

Kubient has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, ECARX has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Earnings and Valuation

This table compares Kubient and ECARX’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kubient	$2.40 million	0.01	-$13.62 million	($0.87)	0.00
ECARX	$4.67 billion	0.12	-$132.42 million	($0.38)	-4.34

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

Summary

Kubient beats ECARX on 7 of the 12 factors compared between the two stocks.

About Kubient

Kubient, Inc. develops a cloud-based software platform for digital advertising industry. It develops Audience Marketplace, a platform for real-time trading of digital, programmatic advertising. The company's platform allows advertisers and publishers the ability to use machine learning during programmatic advertising inventory auction. The company was incorporated in 2017 and is based in New York, New York.

About ECARX

ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.