Analyzing QXO (NASDAQ:QXO) and LiveRamp (NYSE:RAMP)

QXO (NASDAQ:QXO) and LiveRamp (NYSE:RAMP) are both mid-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

This table compares QXO and LiveRamp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QXO	30.08%	1.58%	1.30%
LiveRamp	0.01%	0.97%	0.75%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for QXO and LiveRamp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	0	0	0	0	0.00
LiveRamp	0	2	4	0	2.67

LiveRamp has a consensus target price of $39.33, suggesting a potential upside of 18.53%. Given LiveRamp’s stronger consensus rating and higher possible upside, analysts clearly believe LiveRamp is more favorable than QXO.

Risk & Volatility

QXO has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500. Comparatively, LiveRamp has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

58.7% of QXO shares are owned by institutional investors. Comparatively, 93.8% of LiveRamp shares are owned by institutional investors. 51.3% of QXO shares are owned by insiders. Comparatively, 3.4% of LiveRamp shares are owned by 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.

Earnings & Valuation

This table compares QXO and LiveRamp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QXO	$54.52 million	98.19	-$1.07 million	($9.12)	-1.43
LiveRamp	$659.66 million	3.31	$11.88 million	$0.01	3,318.30

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

Summary

LiveRamp beats QXO on 8 of the 14 factors compared between the two stocks.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

About LiveRamp

LiveRamp Holdings, Inc., a technology company, operates a data collaboration platform in the United States, Europe, the Asia-Pacific, and internationally. The company operates LiveRamp Data Collaboration platform enables an organization to unify customer and prospect data to build a single view of the customer in a way that protects consumer privacy. Its platform supports various people-based marketing solutions, including data collaboration, activation, measurement and analytics, identity, and data marketplace. The company sells its solutions to enterprise marketers, agencies, marketing technology providers, publishers, and data providers in various industry verticals, such as financial, insurance and investment services, retail, automotive, telecommunications, high tech, consumer packaged goods, healthcare, travel, entertainment, and non-profit. The company was formerly known as Acxiom Holdings, Inc. and changed its name to LiveRamp Holdings, Inc. in October 2018. The company was incorporated in 2018 and is headquartered in San Francisco, California.