Contrasting ITEX (OTCMKTS:ITEX) & MediaAlpha (NYSE:MAX)

MediaAlpha (NYSE:MAX) and ITEX (OTCMKTS:ITEX) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares MediaAlpha and ITEX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MediaAlpha	$496.67 million	2.56	-$40.42 million	($0.68)	-28.40
ITEX	N/A	N/A	N/A	N/A	N/A

ITEX has lower revenue, but higher earnings than MediaAlpha.

Volatility and Risk

MediaAlpha has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, ITEX has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares MediaAlpha and ITEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MediaAlpha	-2.69%	N/A	-8.37%
ITEX	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for MediaAlpha and ITEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MediaAlpha	0	1	6	0	2.86
ITEX	0	0	0	0	N/A

MediaAlpha currently has a consensus target price of $24.29, suggesting a potential upside of 25.77%. Given MediaAlpha’s higher possible upside, research analysts clearly believe MediaAlpha is more favorable than ITEX.

Insider & Institutional Ownership

64.4% of MediaAlpha shares are held by institutional investors. 11.5% of MediaAlpha shares are held by insiders. Comparatively, 32.0% of ITEX shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

MediaAlpha beats ITEX on 5 of the 8 factors compared between the two stocks.

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.

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.