Critical Contrast: MediaAlpha (NYSE:MAX) versus Xometry (NASDAQ:XMTR)

Xometry (NASDAQ:XMTR) and MediaAlpha (NYSE:MAX) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Profitability

This table compares Xometry and MediaAlpha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xometry	-9.72%	-10.16%	-4.74%
MediaAlpha	1.41%	-11.98%	5.19%

Volatility & Risk

Xometry has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Xometry and MediaAlpha, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	1	2	4	0	2.43
MediaAlpha	0	1	6	0	2.86

Xometry presently has a consensus target price of $27.71, indicating a potential downside of 11.74%. MediaAlpha has a consensus target price of $25.14, indicating a potential upside of 97.51%. Given MediaAlpha’s stronger consensus rating and higher possible upside, analysts plainly believe MediaAlpha is more favorable than Xometry.

Insider and Institutional Ownership

97.3% of Xometry shares are held by institutional investors. Comparatively, 64.4% of MediaAlpha shares are held by institutional investors. 16.8% of Xometry shares are held by company insiders. Comparatively, 11.5% of MediaAlpha shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Xometry and MediaAlpha”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$463.41 million	3.36	-$67.47 million	($1.05)	-29.90
MediaAlpha	$681.23 million	1.25	-$40.42 million	$0.17	74.88

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

Summary

MediaAlpha beats Xometry on 10 of the 14 factors compared between the two stocks.

About Xometry

Xometry, Inc. operates an online marketplace that enables buyers to source custom-manufactured parts and assemblies in the United States and internationally. It provides computer numerical control manufacturing, sheet metal forming, and sheet cutting; 3D printing, including fused deposition modeling, direct metal laser sintering, PolyJet, stereolithography, selective laser sintering, binder jetting, carbon digital light synthesis, multi jet fusion, and lubricant sublayer photo-curing; and die casting, stamping, injection molding, urethane casting, tube cutting, and tube bending, as well as finishing services, rapid prototyping, and high-volume production services. It serves aerospace, healthcare, robotics, industrial, defense, energy, automotive, government, education, and consumer goods industries. The company was formerly known as NextLine Manufacturing Corp. and changed its name to Xometry, Inc. in June 2015. Xometry, Inc. was incorporated in 2013 and is headquartered in North Bethesda, Maryland.

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.