Grab (NASDAQ:GRAB – Get Free Report) and MediaAlpha (NYSE:MAX – Get Free Report) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Profitability
This table compares Grab and MediaAlpha’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Grab | -18.43% | -6.77% | -5.10% |
MediaAlpha | -10.41% | N/A | -27.85% |
Institutional and Insider Ownership
55.5% of Grab shares are owned by institutional investors. Comparatively, 64.4% of MediaAlpha shares are owned by institutional investors. 3.6% of Grab shares are owned by insiders. Comparatively, 11.5% of MediaAlpha shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Grab | $2.36 billion | 5.60 | -$434.00 million | ($0.10) | -33.70 |
MediaAlpha | $388.15 million | 3.23 | -$40.42 million | ($0.89) | -21.39 |
MediaAlpha has lower revenue, but higher earnings than Grab. Grab is trading at a lower price-to-earnings ratio than MediaAlpha, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Grab has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Grab and MediaAlpha, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Grab | 0 | 0 | 6 | 0 | 3.00 |
MediaAlpha | 1 | 0 | 5 | 0 | 2.67 |
Grab currently has a consensus price target of $5.10, indicating a potential upside of 51.34%. MediaAlpha has a consensus price target of $18.20, indicating a potential downside of 4.41%. Given Grab’s stronger consensus rating and higher possible upside, equities analysts plainly believe Grab is more favorable than MediaAlpha.
About Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. The company is headquartered in Singapore.
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.
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