Critical Analysis: Stagwell (NASDAQ:STGW) versus Haoxi Health Technology (NASDAQ:HAO)

Stagwell (NASDAQ:STGW) and Haoxi Health Technology (NASDAQ:HAO) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Valuation & Earnings

This table compares Stagwell and Haoxi Health Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stagwell	$2.61 billion	0.74	$130,000.00	($0.03)	-240.67
Haoxi Health Technology	$42.57 million	0.20	N/A	N/A	N/A

Stagwell has higher revenue and earnings than Haoxi Health Technology.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Stagwell and Haoxi Health Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stagwell	0	2	5	0	2.71
Haoxi Health Technology	0	0	0	0	N/A

Stagwell currently has a consensus price target of $7.79, suggesting a potential upside of 7.84%. Given Stagwell’s higher probable upside, analysts plainly believe Stagwell is more favorable than Haoxi Health Technology.

Profitability

This table compares Stagwell and Haoxi Health Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stagwell	-0.09%	7.06%	1.44%
Haoxi Health Technology	N/A	N/A	N/A

Institutional & Insider Ownership

35.6% of Stagwell shares are owned by institutional investors. 4.9% of Stagwell shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Stagwell beats Haoxi Health Technology on 8 of the 9 factors compared between the two stocks.

About Stagwell

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.

About Haoxi Health Technology

Haoxi Health Technology Limited, through its subsidiaries, provides online marketing solutions in China. It offers online marketing solutions, which include online short video marketing solutions to advertisers through its media partners; and customized marketing solutions by planning, producing, placing, and optimizing online ads to help its advertisers acquire, convert, and retain consumers on various online media platforms. The company places its ads through mainstream online short video platforms and social media platforms, such as Toutiao, Douyin, WeChat, and Sina Weibo. It serves advertiser client base primarily in the healthcare industry. The company was founded in 2018 and is based in Beijing, China.