Stagwell (NASDAQ:STGW – Get Rating) and Stran & Company, Inc. (NASDAQ:SWAG – Get Rating) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
38.0% of Stagwell shares are owned by institutional investors. Comparatively, 7.4% of Stran & Company, Inc. shares are owned by institutional investors. 3.1% of Stagwell shares are owned by insiders. Comparatively, 50.5% of Stran & Company, Inc. 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.
Get Stagwell alerts:Volatility & Risk
Stagwell has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Stran & Company, Inc. has a beta of 2.36, indicating that its stock price is 136% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Stagwell and Stran & Company, Inc., as reported by MarketBeat.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stagwell | 0 | 0 | 4 | 0 | 3.00 |
| Stran & Company, Inc. | 0 | 0 | 0 | 0 | N/A |
Stagwell presently has a consensus price target of $11.75, suggesting a potential upside of 70.54%. Given Stagwell's higher probable upside, equities analysts plainly believe Stagwell is more favorable than Stran & Company, Inc..
Valuation and Earnings
This table compares Stagwell and Stran & Company, Inc.'s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stagwell | $1.47 billion | 1.38 | $21.04 million | $0.27 | 25.52 |
| Stran & Company, Inc. | $39.70 million | 0.77 | $230,000.00 | N/A | N/A |
Stagwell has higher revenue and earnings than Stran & Company, Inc..
Profitability
This table compares Stagwell and Stran & Company, Inc.'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stagwell | 1.33% | 5.87% | 1.26% |
| Stran & Company, Inc. | -3.21% | -4.20% | -3.18% |
Summary
Stagwell beats Stran & Company, Inc. on 9 of the 11 factors compared between the two stocks.
About Stagwell
(Get Rating)
Stagwell, Inc. operates as media and public relations agency. It delivers brands that connect culture-moving creativity with technology to harmonize the art and science of marketing. It operates through the following segments: Integrated Agencies Network, Media Network, Communications Network, All Other, and Corporate. The Integrated Agencies Network segment engages in the organization of go-to-market and collaboration incentive purposes to facilitate integrated and flexible offerings for clients. The Media Network segment consists of a specialist network branded as Stagwell Media Network. The Communications Network segment focuses on a specialist network that provides advocacy, strategic corporate communications, investor relations, public relations, online fundraising and other services to both corporations and political and advocacy organizations and consists of Allison & Partners SKDK (including Sloane & Company), and Targeted Victory Agencies. The All Other segment consists of Stagwell Marketing Cloud products such as PRophet. The Corporate segment includes corporate office expenses. The company was founded in 2015 and is headquartered in New York, NY.
About Stran & Company, Inc.
(Get Rating)
Stran & Company, Inc. provides outsourced marketing solutions. The company offers clients custom sourcing services; and e-commerce solutions for promoting branded merchandise and other promotional products, managing promotional loyalty and incentives, print collateral and event assets, order and inventory management, designing and hosting online retail popup shops, fixed public retail online stores, and online business-to-business service offerings. It also provides creative and merchandising services; warehousing/fulfillment and distribution; print-on-demand services; kitting services; point of sale displays; and loyalty and incentive programs. The company was founded in 1994 and is headquartered in Quincy, Massachusetts.
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