Betawave (OTCMKTS:BWAV) versus NerdWallet (NASDAQ:NRDS) Critical Analysis

NerdWallet (NASDAQ:NRDS) and Betawave (OTCMKTS:BWAV) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NerdWallet	$599.40 million	1.72	-$11.80 million	($0.14)	-99.99
Betawave	N/A	N/A	N/A	N/A	N/A

Betawave has lower revenue, but higher earnings than NerdWallet.

Profitability

This table compares NerdWallet and Betawave’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NerdWallet	-1.65%	-2.90%	-2.45%
Betawave	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for NerdWallet and Betawave, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NerdWallet	0	2	4	0	2.67
Betawave	0	0	0	0	0.00

NerdWallet currently has a consensus target price of $17.00, indicating a potential upside of 21.43%. Given NerdWallet’s stronger consensus rating and higher possible upside, equities analysts clearly believe NerdWallet is more favorable than Betawave.

Insider and Institutional Ownership

38.8% of NerdWallet shares are owned by institutional investors. 45.9% of NerdWallet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

NerdWallet beats Betawave on 6 of the 9 factors compared between the two stocks.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.

About Betawave

Betawave Corporation provides online advertising services for a portfolio of websites. It delivers advertising to audiences of highly-engaged users. The company has a network of websites in three online categories: immersive casual gaming, virtual world, and social play and entertainment. It specializes in helping brand marketers reach the attentive audiences on various Web sites through ad formats. It serves advertisers in various categories, including consumer packaged goods, entertainment, consumer electronics and software, and retail. The company's advertising in the publisher sites includes direct sales category comprising IAB graphical advertising and rich media/immersive advertising; and remnant inventory category, which are advertising inventory on a website that is not sold directly to an advertiser. It sells its inventory and marketing services through a sales and marketing organization in the United States. The company was formerly known as GoFish Corporation and changed its name to Betawave Corporation in January 2009. Betawave Corporation was incorporated in 2003 and is based in San Francisco, California.