Financial Comparison: MediaAlpha (NYSE:MAX) & Hallmark Financial Services (NASDAQ:HALL)

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MediaAlpha (NYSE:MAXGet Rating) and Hallmark Financial Services (NASDAQ:HALLGet Rating) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

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65.5% of MediaAlpha shares are owned by institutional investors. Comparatively, 19.1% of Hallmark Financial Services shares are owned by institutional investors. 9.6% of MediaAlpha shares are owned by insiders. Comparatively, 28.7% of Hallmark Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

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 & Volatility

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MediaAlpha 0 3 1 0 2.25
Hallmark Financial Services 0 0 0 0 N/A

MediaAlpha presently has a consensus price target of $18.60, indicating a potential upside 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’ higher possible upside, analysts clearly believe Hallmark Financial Services is more favorable than MediaAlpha.

Valuation & Earnings

This table compares MediaAlpha and Hallmark Financial Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income 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 earnings than MediaAlpha. MediaAlpha is trading 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 of the 13 factors compared between the two stocks.

MediaAlpha Company Profile (Get Rating)

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. MediaAlpha, Inc. is a subsidiary of White Mountains Insurance Group, Ltd.

Hallmark Financial Services Company Profile (Get Rating)

Hallmark Financial Services, Inc. underwrites, markets, distributes, and services property/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 commercial vehicle insurance products and services; primary and excess liability, excess public entity liability, and E&S package and garage liability insurance products and services; primary and excess commercial property insurance for catastrophe and non-catastrophe exposures; healthcare and financial lines professional liability insurance products and services primarily for businesses, medical professionals, medical facilities, and senior care facilities; and satellite launch property/casualty insurance products and services, as well as various specialty programs. The Standard Commercial segment provides package and monoline property/casualty insurance products and services. The Personal segment offers non-standard personal automobile and renters insurance products and services. It markets its insurance products through independent general agents, retail agents, and specialty brokers. The company was incorporated in 1987 and is headquartered in Dallas, Texas.



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