Analyzing Rocket Fuel (FUEL) and Social Reality (SCRI)

Rocket Fuel (NASDAQ: FUEL) and Social Reality (OTCMKTS:SCRI) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Earnings & Valuation

This table compares Rocket Fuel and Social Reality’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rocket Fuel $420.47 million 0.29 -$16.55 million ($1.50) -1.73
Social Reality N/A N/A N/A N/A N/A

Social Reality has higher revenue, but lower earnings than Rocket Fuel.

Profitability

This table compares Rocket Fuel and Social Reality’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rocket Fuel -16.39% -54.16% -14.86%
Social Reality -12.34% -37.44% -12.15%

Institutional & Insider Ownership

40.4% of Rocket Fuel shares are owned by institutional investors. 34.9% of Rocket Fuel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Rocket Fuel and Social Reality, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rocket Fuel 1 3 0 0 1.75
Social Reality 0 0 1 0 3.00

Rocket Fuel presently has a consensus price target of $3.48, suggesting a potential upside of 33.65%. Social Reality has a consensus price target of $5.00, suggesting a potential upside of 284.62%. Given Social Reality’s stronger consensus rating and higher probable upside, analysts plainly believe Social Reality is more favorable than Rocket Fuel.

Summary

Social Reality beats Rocket Fuel on 6 of the 9 factors compared between the two stocks.

About Rocket Fuel

Rocket Fuel Inc. is a technology company, which offers a Programmatic Marketing Platform that is designed for helping marketers and their agencies to connect with consumers through digital media. The Company’s service offerings are organized around platforms, including Data Management Platform (DMP) and Demand Side Platform (DSP), which are used by customers themselves or integrating with other customer relationship management or marketing platforms, and together in various permutations as its Programmatic Marketing Platform. The integrated platform is designed to deliver and optimize media spend to engage, upsell and retarget consumers across addressable channels, including display, mobile and video, and across addressable devices, such as tablets, set top boxes, television and mobile phones. It offers Programmatic Marketing Platform as a managed service, which it operate on behalf of its customers, and as a self-service platform operated by its customers or their agencies directly.

About Social Reality

Social Reality, Inc. is an Internet advertising and platform technology company. The Company provides tools to automate the digital advertising market. It is engaged in the sales of digital media advertising campaigns to advertising agencies and brands; sales of media inventory through real-time bidding (RTB) exchanges; sale and licensing of its SRAX Social platform and related media, and creation of custom platforms for buying media on SRAX for various brands. Its technology assists publishers in delivering their media inventory to the RTB exchanges. It provides the SRAX platform to brands and their advertising agencies. SRAX Social is a social media and loyalty platform that allows brands to launch and manage their social media initiatives. SRAX MD is an advertisement targeting and data platform for healthcare brands and medical content publishers. SRAX APP is a platform that allows publishers and content owners to launch native mobile applications through its SRAX platform.

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