Analyzing 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 stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Analyst Recommendations

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 presently has a consensus target price of $24.29, indicating a potential upside of 27.79%. Given MediaAlpha’s higher probable upside, equities research analysts plainly believe MediaAlpha is more favorable than ITEX.

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

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.

Insider and Institutional Ownership

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

Valuation and Earnings

This table compares MediaAlpha and ITEX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MediaAlpha	$496.67 million	2.52	-$40.42 million	($0.68)	-27.95
ITEX	N/A	N/A	N/A	N/A	N/A

ITEX has lower revenue, but higher earnings than MediaAlpha.

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.