Financial Contrast: Harte Hanks (HHS) and Cardlytics (CDLX)

Cardlytics (NASDAQ: CDLX) and Harte Hanks (NYSE:HHS) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Analyst Ratings

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This is a breakdown of current recommendations and price targets for Cardlytics and Harte Hanks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardlytics 0 1 4 0 2.80
Harte Hanks 0 0 1 0 3.00

Cardlytics currently has a consensus target price of $22.40, indicating a potential upside of 53.64%. Given Cardlytics’ higher possible upside, research analysts plainly believe Cardlytics is more favorable than Harte Hanks.

Valuation & Earnings

This table compares Cardlytics and Harte Hanks’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardlytics $130.37 million 2.24 -$19.64 million ($8.02) -1.82
Harte Hanks $383.91 million 0.15 -$41.86 million ($1.20) -7.76

Cardlytics has higher earnings, but lower revenue than Harte Hanks. Harte Hanks is trading at a lower price-to-earnings ratio than Cardlytics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cardlytics and Harte Hanks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardlytics N/A N/A N/A
Harte Hanks -10.90% N/A -4.29%

Summary

Cardlytics beats Harte Hanks on 6 of the 9 factors compared between the two stocks.

Cardlytics Company Profile

Cardlytics, Inc. is engaged in developing a purchase intelligence platform. The Company delivers relevant and measurable marketing analysis with purchase data from over financial institutions. The purchase data includes debit, credit, and bill pay data from online and in-store transactions. It helps the marketers identify, reach and influence likely buyers at scale, and measure the impact of marketing spends. The Company also operates an advertising channel, Cardlytics Direct. Cardlytics Direct delivers tailored marketing for marketers and financial institutions (FI). It provides personalized offers and suggestions for FI consumers on their purchase.

Harte Hanks Company Profile

Harte Hanks, Inc. (Harte Hanks) is a multi-channel marketing company. The Company’s Customer Interaction business offers a range of marketing services, in media from direct mail to e-mail, including agency and digital services; database marketing solutions and business-to-business lead generation; direct mail, and contact centers. Its agency services are customer engagement agencies specializing in direct and digital communications for both consumer and business-to-business markets. The Company’s digital solutions integrate online services within the marketing mix and include search engine management, display, digital analytics, Website development and design, digital strategy, social media, e-mail, e-commerce and interactive relationship management and a range of other services that support its core businesses.

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