Critical Analysis: MaxPoint Interactive (MXPT) & Ebix (EBIX)

MaxPoint Interactive (NASDAQ: MXPT) and Ebix (NASDAQ:EBIX) are both enterprise software companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares MaxPoint Interactive and Ebix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MaxPoint Interactive -15.33% -70.90% -29.65%
Ebix 29.08% 21.31% 11.06%

Analyst Recommendations

This is a summary of recent recommendations for MaxPoint Interactive and Ebix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MaxPoint Interactive 0 0 0 0 N/A
Ebix 0 0 3 0 3.00

Ebix has a consensus target price of $87.00, suggesting a potential upside of 16.86%. Given Ebix’s higher probable upside, analysts clearly believe Ebix is more favorable than MaxPoint Interactive.

Insider & Institutional Ownership

8.0% of MaxPoint Interactive shares are owned by institutional investors. Comparatively, 62.3% of Ebix shares are owned by institutional investors. 57.1% of MaxPoint Interactive shares are owned by company insiders. Comparatively, 13.0% of Ebix shares are owned 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.

Earnings and Valuation

This table compares MaxPoint Interactive and Ebix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
MaxPoint Interactive N/A N/A N/A ($2.20) -6.30
Ebix $298.29 million 7.85 $93.84 million $3.09 24.09

Ebix has higher revenue and earnings than MaxPoint Interactive. MaxPoint Interactive is trading at a lower price-to-earnings ratio than Ebix, indicating that it is currently the more affordable of the two stocks.

Dividends

Ebix pays an annual dividend of $0.30 per share and has a dividend yield of 0.4%. MaxPoint Interactive does not pay a dividend. Ebix pays out 9.7% of its earnings in the form of a dividend.

Summary

Ebix beats MaxPoint Interactive on 9 of the 11 factors compared between the two stocks.

About MaxPoint Interactive

MaxPoint Interactive, Inc. is a marketing technology company. The Company provides business intelligence and marketing automation solution. The Company’s MaxPoint Intelligence Platform is a cloud-based software service that enables to predict local demand for national brands based on consumers’ purchase power and intent and manage customized digital advertisements containing in-store offers and promotions to reach consumers at a local level across display, mobile, social and video channels. Through marketing automation and direct integrations with real-time bidding (RTB) exchanges, the Company’s platform delivers customized digital advertisements containing product and store specific promotions to local consumers. The Company’s customers are located in the United States and Europe, and consist of enterprises with national brands in the consumer products, retail, automotive, financial services, healthcare, telecommunications and entertainment industries.

About Ebix

Ebix, Inc. (Ebix) is a supplier of software and e-commerce solutions to the insurance industry. Ebix provides application software products for the insurance industry, including carrier systems, agency systems and exchanges, as well as custom software development. Ebix conducts its operations through four channels, which include Exchanges, Carrier Systems, Broker Systems and Risk Compliance Solutions (RCS). Ebix operates data exchanges in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, and property and casualty (P&C) insurance. Ebix designs and deploys back-end systems for P&C insurance brokers across the world. Ebix also designs and deploys on-demand and back-end systems for P&C insurance companies. Ebix focus in RCS channel pertains to business process outsourcing services that include providing project management, time and material consulting to clients across the world, and claims adjudication/settlement services.

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