Critical Contrast: Mastermind (OTCMKTS:MMND) vs. Stagwell (NASDAQ:STGW)

Stagwell (NASDAQ:STGW) and Mastermind (OTCMKTS:MMND) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Stagwell has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Mastermind has a beta of -0.32, indicating that its share price is 132% less volatile than the S&P 500.

Profitability

This table compares Stagwell and Mastermind’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stagwell	-0.09%	7.06%	1.44%
Mastermind	N/A	8.63%	7.17%

Earnings and Valuation

This table compares Stagwell and Mastermind”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stagwell	$2.61 billion	0.71	$130,000.00	($0.03)	-228.67
Mastermind	$4.71 million	0.38	$390,000.00	N/A	N/A

Mastermind has lower revenue, but higher earnings than Stagwell.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Stagwell and Mastermind, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stagwell	0	1	4	0	2.80
Mastermind	0	0	0	0	N/A

Stagwell currently has a consensus price target of $8.10, suggesting a potential upside of 18.08%. Given Stagwell’s higher probable upside, equities analysts plainly believe Stagwell is more favorable than Mastermind.

Institutional & Insider Ownership

35.6% of Stagwell shares are held by institutional investors. 4.9% of Stagwell shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Stagwell beats Mastermind on 7 of the 11 factors compared between the two stocks.

About Stagwell

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.

About Mastermind

Mastermind, Inc., an involvement marketing service agency, designs, creates, and develops branding and marketing campaigns for corporate clients. Its programs cover various forms, such as creating and managing digital content, designing campaign Websites/landing pages, social media and viral campaigns, mobile marketing initiatives, and brand communications. The company customers comprise of sports and entertainment, oil and gas, automotive, retail, restaurant, B2B, financial services, hotel and hospitality, consumer packaged goods, healthcare and pharmaceuticals, technology, and agricultural chemicals. Mastermind, Inc. was founded in 2012 and is based in Atlanta, Georgia. Mastermind, Inc. is a subsidiary of Mastermind Marketing, Inc.