Critical Review: ZW Data Action Technologies (NASDAQ:CNET) vs. SRAX (NASDAQ:SRAX)

SRAX (NASDAQ:SRAX) and ZW Data Action Technologies (NASDAQ:CNET) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for SRAX and ZW Data Action Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SRAX	0	0	0	0	N/A
ZW Data Action Technologies	0	0	0	0	N/A

Risk and Volatility

SRAX has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, ZW Data Action Technologies has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Insider & Institutional Ownership

8.0% of SRAX shares are held by institutional investors. Comparatively, 0.0% of ZW Data Action Technologies shares are held by institutional investors. 10.2% of SRAX shares are held by company insiders. Comparatively, 17.7% of ZW Data Action Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares SRAX and ZW Data Action Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SRAX	$29.29 million	0.20	-$31.64 million	N/A	N/A
ZW Data Action Technologies	$24.40 million	0.58	-$5.97 million	($0.82)	-2.38

ZW Data Action Technologies has lower revenue, but higher earnings than SRAX.

Profitability

This table compares SRAX and ZW Data Action Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SRAX	N/A	N/A	N/A
ZW Data Action Technologies	-18.42%	-67.57%	-34.58%

Summary

SRAX beats ZW Data Action Technologies on 6 of the 9 factors compared between the two stocks.

About SRAX

SRAX, Inc., a technology company, focused on enhancing communications between public companies and their shareholders and investors in the United States. The company offers Sequire, a Saas platform that allows issuers to track their shareholders' behaviors and trends, then use data-driven insights to engage with shareholders across marketing channels. It also organizes and hosts investor conferences within the micro and small- cap markets. The company markets and sells its services through its in-house sales and marketing team. The company was formerly known as Social Reality, Inc. and changed its name to SRAX, Inc. in August 2019. SRAX, Inc. was founded in 2009 and is headquartered in Westlake Village, California.

About ZW Data Action Technologies

ZW Data Action Technologies Inc., through its subsidiaries, offers omni-channel advertising, precision marketing, and data analysis management systems in the People’s Republic of China. The company offers Internet advertising, precision marketing, and related data services to small and medium enterprises through its Internet portals, including 28.com and liansuo.com that provide advertisers with tools to build sales channels in the form of franchisees, sales agents, distributors, and/or resellers. It also develops and operates blockchain technology-based products and services, as well as blockchain-based SaaS services that provides one-stop blockchain-powered enterprise management solutions in forms of NFT generations, data record, share, and storage module subscriptions, etc. In addition, the company offers other e-commerce O2O advertising, and marketing and related value-added technical services. Additionally, it offers online-content production, distribution, promotion, and live streamer training and management services. The company was formerly known as ChinaNet Online Holdings, Inc. and changed its name to ZW Data Action Technologies Inc. in October 2020. Data Action Technologies Inc. was founded in 2003 and is based in Beijing, the People’s Republic of China.