Financial comparison: MediaAlpha (NYSE: MAX) and Hallmark Financial Services (NASDAQ: HALL)


MediaAlpha (NYSE:MAX – Get Rating) and Hallmark Financial Services (NASDAQ:HALL – Get Rating) are both small-cap business services companies, but which company is better? We’ll compare the two companies based on earnings strength, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

65.5% of MediaAlpha shares are held by institutional investors. By comparison, 19.1% of Hallmark Financial Services shares are held by institutional investors. 9.6% of MediaAlpha shares are held by insiders. By comparison, 28.7% of Hallmark Financial Services shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a company will outperform the market over the long term.

Profitability

This table compares the net margins, return on equity, and return on assets of MediaAlpha and Hallmark Financial Services.

Net margins Return on equity return on assets
MediaAlpha -2.06% N / A -3.97%
Hallmark Financial Services -0.74% -3.62% -0.42%

Risk and Volatility

MediaAlpha has a beta of 0.67, which means its stock price is 33% less volatile than the S&P 500. Comparatively, Hallmark Financial Services has a beta of 1.24, which means its stock price is 24% more volatile than the S&P 500.

Analyst Notes

This is a summary of recent ratings and recommendations for MediaAlpha and Hallmark Financial Services, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
MediaAlpha 0 3 1 0 2.25
Hallmark Financial Services 0 0 0 0 N / A

MediaAlpha currently has a consensus price target of $18.60, indicating an upside potential of 82.17%. Hallmark Financial Services has a consensus price target of $6.00, indicating a potential upside of 137.15%. Given Hallmark Financial Services’ possible higher upside, analysts clearly believe that Hallmark Financial Services is more favorable than MediaAlpha.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of MediaAlpha and Hallmark Financial Services.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
MediaAlpha $645.27 million 0.97 -$5.28 million ($0.38) -26.87
Hallmark Financial Services $404.70 million 0.11 $9.00 million ($0.16) -15.81

Hallmark Financial Services has lower revenue, but higher profit than MediaAlpha. MediaAlpha trades at a lower price-to-earnings ratio than Hallmark Financial Services, indicating that it is currently the more affordable of the two stocks.

Summary

Hallmark Financial Services beats MediaAlpha on 8 out of 13 factors compared between the two stocks.

MediaAlpha Company Profile (Get an assessment)

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. He optimizes customer acquisition across various P&C, health and life insurance verticals. The company was founded in 2014 and is based in Los Angeles, California. MediaAlpha, Inc. is a subsidiary of White Mountains Insurance Group, Ltd.

Hallmark Financial Services Company Profile (Get an assessment)

Hallmark Financial Services, Inc. underwrites, markets, distributes and services property and casualty insurance products to businesses and individuals in the United States. The Company operates through Specialty Commercial, Standard Commercial and Personal segments. The Specialty Commercial segment offers primary and excess insurance products and services for commercial vehicles; primary and excess liability, excess liability of public entities, and E&S and garage liability insurance products and services; commercial property primary and excess insurance for catastrophic and non-catastrophic risks; professional indemnity insurance products and services primarily intended for businesses, healthcare professionals, medical establishments and aged care establishments; and property and casualty insurance and satellite launch products and services, as well as various specialty programs. The Standard Commercial segment provides property and casualty insurance products and services. The Personal segment offers automobile and non-standard renter insurance products and services for individuals. It markets its insurance products through independent general agents, retail agents and specialized brokers. The company was incorporated in 1987 and is based in Dallas, Texas.



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