EverQuote (NASDAQ:EVER – Get Free Report) and System1 (NYSE:SST – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.
Earnings and Valuation
This table compares EverQuote and System1″s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EverQuote | $287.92 million | 2.64 | -$51.29 million | $0.34 | 63.21 |
| System1 | $401.97 million | 0.14 | -$227.22 million | ($1.21) | -0.49 |
EverQuote has higher earnings, but lower revenue than System1. System1 is trading at a lower price-to-earnings ratio than EverQuote, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EverQuote | 0 | 0 | 5 | 1 | 3.17 |
| System1 | 0 | 1 | 0 | 0 | 2.00 |
EverQuote presently has a consensus price target of $31.67, indicating a potential upside of 47.36%. System1 has a consensus price target of $2.00, indicating a potential upside of 236.70%. Given System1’s higher probable upside, analysts clearly believe System1 is more favorable than EverQuote.
Volatility and Risk
EverQuote has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, System1 has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.
Profitability
This table compares EverQuote and System1’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EverQuote | 3.31% | 13.94% | 9.24% |
| System1 | -24.18% | -68.85% | -18.27% |
Insider and Institutional Ownership
91.5% of EverQuote shares are held by institutional investors. Comparatively, 87.5% of System1 shares are held by institutional investors. 29.8% of EverQuote shares are held by company insiders. Comparatively, 14.1% of System1 shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
EverQuote beats System1 on 12 of the 15 factors compared between the two stocks.
About EverQuote
EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.
About System1
System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.
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