PropertyGuru Group (NYSE:PGRU) versus Marin Software (NASDAQ:MRIN) Critical Contrast

Marin Software (NASDAQ:MRIN) and PropertyGuru Group (NYSE:PGRU) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Insider & Institutional Ownership

9.5% of Marin Software shares are owned by institutional investors. Comparatively, 61.4% of PropertyGuru Group shares are owned by institutional investors. 9.3% of Marin Software shares are owned by insiders. Comparatively, 3.9% of PropertyGuru Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Marin Software and PropertyGuru Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marin Software	-107.95%	-78.95%	-57.29%
PropertyGuru Group	-7.37%	-1.12%	-0.95%

Risk and Volatility

Marin Software has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, PropertyGuru Group has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Valuation and Earnings

This table compares Marin Software and PropertyGuru Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marin Software	$17.73 million	0.41	-$21.92 million	($6.26)	-0.37
PropertyGuru Group	$111.81 million	7.07	-$11.37 million	($0.05)	-97.00

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

Analyst Recommendations

This is a breakdown of current ratings for Marin Software and PropertyGuru Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marin Software	0	0	0	0	N/A
PropertyGuru Group	0	0	1	0	3.00

PropertyGuru Group has a consensus target price of $7.00, indicating a potential upside of 44.33%. Given PropertyGuru Group’s higher possible upside, analysts plainly believe PropertyGuru Group is more favorable than Marin Software.

Summary

PropertyGuru Group beats Marin Software on 10 of the 12 factors compared between the two stocks.

About Marin Software

Marin Software Incorporated, together with its subsidiaries, provides enterprise marketing software for advertisers and agencies in the United States, the United Kingdom, and internationally. It offers MarinOne, a search, social, and eCommerce advertising platform, as well as self-serves solutions and managed services. The company markets and sells its solutions to advertisers directly, and through advertising agencies that use its platform on behalf of their customers. Marin Software Incorporated was incorporated in 2006 and is headquartered in San Francisco, California.

About PropertyGuru Group

PropertyGuru Group Limited operates digital property classifieds marketplaces that connects homeowners and tenants with verified home service providers in Singapore, Vietnam, Malaysia, Thailand, and Indonesia. The company offers digital and marketing services for developers. It also offers data and sales process automation products. In addition, the company provides a range of data products and services for agents/agencies, property developers and valuers, and financial institution customers. It serves agents and developers to advertise residential and commercial properties for sale or rent to property seekers. PropertyGuru Group Limited was founded in 2007 and is based in Singapore.