Critical Analysis: Uber Technologies (NYSE:UBER) vs. Marchex (NASDAQ:MCHX)

Uber Technologies (NYSE:UBER) and Marchex (NASDAQ:MCHX) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

Uber Technologies has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Marchex has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Uber Technologies and Marchex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uber Technologies	0	6	32	1	2.87
Marchex	0	0	0	0	0.00

Uber Technologies presently has a consensus price target of $90.32, indicating a potential upside of 26.31%. Given Uber Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Uber Technologies is more favorable than Marchex.

Valuation & Earnings

This table compares Uber Technologies and Marchex”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uber Technologies	$37.28 billion	4.04	$1.89 billion	$2.01	35.58
Marchex	$49.91 million	1.44	-$9.91 million	($0.09)	-18.33

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

Profitability

This table compares Uber Technologies and Marchex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Uber Technologies	10.49%	33.46%	10.55%
Marchex	-8.60%	-10.76%	-8.21%

Insider and Institutional Ownership

80.2% of Uber Technologies shares are held by institutional investors. Comparatively, 73.5% of Marchex shares are held by institutional investors. 3.8% of Uber Technologies shares are held by insiders. Comparatively, 21.7% of Marchex shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Uber Technologies beats Marchex on 13 of the 15 factors compared between the two stocks.

About Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

About Marchex

Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.