Critical Review: Acxiom (ACXM) and Brightcove (BCOV)

Acxiom (NASDAQ:ACXM) and Brightcove (NASDAQ:BCOV) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Risk and Volatility

Acxiom has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Brightcove has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Valuation & Earnings

This table compares Acxiom and Brightcove’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acxiom $917.41 million 4.13 $23.48 million $0.44 111.20
Brightcove $155.91 million 1.89 -$19.51 million ($0.48) -17.08

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

Profitability

This table compares Acxiom and Brightcove’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acxiom 2.34% 3.93% 2.45%
Brightcove -9.04% -15.19% -8.01%

Insider & Institutional Ownership

94.5% of Acxiom shares are held by institutional investors. Comparatively, 75.1% of Brightcove shares are held by institutional investors. 3.5% of Acxiom shares are held by company insiders. Comparatively, 4.9% of Brightcove shares are held 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 summary of recent ratings for Acxiom and Brightcove, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acxiom 0 0 5 0 3.00
Brightcove 0 1 4 0 2.80

Acxiom currently has a consensus target price of $46.00, indicating a potential downside of 5.99%. Brightcove has a consensus target price of $11.81, indicating a potential upside of 44.05%. Given Brightcove’s higher probable upside, analysts plainly believe Brightcove is more favorable than Acxiom.

Summary

Acxiom beats Brightcove on 11 of the 14 factors compared between the two stocks.

Acxiom Company Profile

Acxiom Corporation operates a technology and enablement services company in the United States, Europe, the Asia-Pacific, and internationally. The company operates through three segments: Connectivity, Audience Solutions, and Marketing Services. The Connectivity segment provides a foundational identity resolution layer, which enables its clients to identify and reach consumers across channels and measure the impact of marketing on sales. This segment offers LiveRamp IdentityLink, an identity resolution service that ties data back to real people and makes it possible to onboard that data for people-based marketing initiatives across digital channels. Its IdentityLink serves brands and agencies, marketing technology providers, data owners, and publishers. The Audience Solutions segment offers consumer demographics products, including InfoBase products to marketers with the ability to identify and reach the right audience with the right message across traditional and digital channels; and AbiliTec, which enables brands recognize individuals and households using various types of input variables and connect identities online and offline. The Marketing Services segment offers marketing database services, and strategy and analytics. The company serves companies and organizations in the financial services, insurance, information services, direct marketing, retail, consumer packaged goods, technology, automotive, healthcare, travel, and communications industries, as well as in the non-profit and government sectors. Acxiom Corporation was founded in 1969 and is headquartered in Conway, Arkansas.

Brightcove Company Profile

Brightcove Inc. provides cloud-based services for video. The company offers Video Cloud, an online video platform that enables its customers to publish and distribute video to Internet-connected devices. Its Video Cloud platform offers various features and functionalities, such as uploading and encoding, content management, video player technology, multi-platform video experiences, live video streaming, distribution and syndication, social media, advertising and monetization, and analytics, as well as APIs, SDKs, and developer resources. The company also provides Zencoder, a cloud-based video encoding service with various features and functionalities, including file support, quality and control, speed and reliability, platform and security, and account and integration; SSAI, a cloud-based ad insertion and video stitching service; and Player, a cloud-based service for creating and managing video player experiences. In addition, it offers Video Marketing Suite, a suite of video technologies designed to address the needs of marketers to drive awareness, engagement, and conversion; OTT Flow, a service for media companies and content owners; and Enterprise video suite, an enterprise-class platform for internal communications, employee training, live streaming, marketing, and e-commerce videos. Further, the company provides account management, professional services, support, and online and onsite training services. Brightcove Inc. offers its products to media companies, broadcasters, publishers, brands, and corporations; and governments, educational institutions, and non-profit organizations through direct sales, referral partners, channel partners, and resellers in North America, Europe, Japan, the Asia Pacific, and internationally, as well as sells its products online. The company was formerly known as Video Marketplace, Inc. and changed its name to Brightcove Inc. in March 2005. Brightcove Inc. was founded in 2004 and is headquartered in Boston, Massachusetts.

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