Critical Comparison: China Recycling Energy (NASDAQ:CREG) and Marchex (NASDAQ:MCHX)

China Recycling Energy (NASDAQ:CREG) and Marchex (NASDAQ:MCHX) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Valuation and Earnings

This table compares China Recycling Energy and Marchex’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Recycling Energy $4.89 million 1.55 -$66.00 million N/A N/A
Marchex $85.25 million 1.82 -$2.68 million ($0.06) -60.00

Marchex has higher revenue and earnings than China Recycling Energy.

Profitability

This table compares China Recycling Energy and Marchex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Recycling Energy N/A -53.58% -25.70%
Marchex -4.24% -0.58% -0.46%

Insider & Institutional Ownership

2.9% of China Recycling Energy shares are owned by institutional investors. Comparatively, 55.5% of Marchex shares are owned by institutional investors. 16.7% of China Recycling Energy shares are owned by company insiders. Comparatively, 18.4% of Marchex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

China Recycling Energy has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500. Comparatively, Marchex has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for China Recycling Energy and Marchex, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Recycling Energy 0 0 0 0 N/A
Marchex 0 0 2 0 3.00

Marchex has a consensus target price of $7.00, indicating a potential upside of 94.44%. Given Marchex’s higher probable upside, analysts plainly believe Marchex is more favorable than China Recycling Energy.

Summary

Marchex beats China Recycling Energy on 9 of the 11 factors compared between the two stocks.

China Recycling Energy Company Profile

China Recycling Energy Corporation engages in the recycling energy business in China. It designs, finances, constructs, operates, and transfers waste energy recycling projects to mid- to large-size enterprises involved in high energy-consuming businesses. The company offers waste pressure-to-energy solutions, including the blast furnace top gas recovery turbine unit, a system that utilizes high pressure gas emitted from the blast furnace top to drive turbine units and generates electricity; and waste heat-to-energy solutions, such as heat power generation projects for applications in cement, steel, coking coal, and nonferrous metal industries, which collect the residual heat from various manufacturing processes. It also provides waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste gas from coal mining, petroleum exploitation, refinery processing, or other sources as a fuel source to generate electricity; and the combined cycle power plant, which employs power generating cycle to utilize the waste gas that generates electricity by burning the flammable waste gas in a gas turbine, as well as uses the waste heat from burning the gas to make steam to generate additional electricity through a steam turbine. In addition, the company offers biomass power generation systems (BMPG); and waste heat power generation (WHPG) systems; and project investment, investment management, economic information consulting, technical, and financial leasing services, as well as leases energy saving systems and equipment. As of December 31, 2017, it had five recycling WHPG systems and four BMPG systems. The company was formerly known as China Digital Wireless, Inc. and changed its name to China Recycling Energy Corporation in March 2007. China Recycling Energy Corporation was incorporated in 1980 and is headquartered in Xi'an, China.

Marchex Company Profile

Marchex, Inc. operates as a call analytics company that helps businesses connect, drive, measure, and convert callers into customers. Its products include Marchex Call Analytics, an analytics platform for enterprises that depend on inbound phone calls to drive sales, appointments, and reservations; Marchex Speech Analytics that enable actionable insights for enterprise, mid-sized, and small businesses; Text Analytics and Communications, which enable businesses to send and receive text/SMS messages with customers; Call Monitoring; Marchex Omnichannel Analytics Cloud products, such as Marchex Search Analytics, a product for search marketers that drive phone calls from search campaigns, as well as Marchex Display and Video Analytics, a product for marketers that buy digital display advertising; Marchex Site Analytics, a product for marketers that can drive phone calls from Websites; and Marchex Social Analytics, a product for marketers that buy social media advertising. The company also offers Marchex Audience Targeting that leverages call data to automatically build audience segments for display and social media platforms; and Marchex Call Marketplace, a mobile advertising network for businesses that depend on inbound phone calls to drive sales, as well as provides advertisers ad placements across various mobile and online media sources to deliver qualified calls to their businesses. In addition, it provides Local Leads platform, a service advertising solution for small business resellers, such as Yellow Pages providers and vertical marketing service providers to sell call advertising, search marketing, and other lead generation products through their existing sales channels to small business advertisers. Marchex, Inc. was founded in 2003 and is headquartered in Seattle, Washington.

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