Critical Comparison: Kubient (NASDAQ:KBNT) vs. ECARX (NASDAQ:ECX)

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

Analyst Ratings

This is a breakdown of current recommendations for Kubient and ECARX, as provided by MarketBeat.com.

	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 target price of $10.00, indicating a potential upside of 541.03%. Given ECARX’s higher probable upside, analysts plainly believe ECARX is more favorable than Kubient.

Earnings & Valuation

This table compares Kubient and ECARX’s top-line 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	$657.10 million	0.80	-$132.42 million	($0.38)	-4.11

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.

Volatility & Risk

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

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%

Insider and Institutional 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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.