Critical Comparison: Marketo (MKTO) vs. Box (BOX)

Marketo (NASDAQ: MKTO) and Box (NYSE:BOX) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Marketo and Box, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marketo 0 0 0 0 N/A
Box 0 4 12 0 2.75

Box has a consensus price target of $23.00, suggesting a potential upside of 23.72%. Given Box’s higher probable upside, analysts clearly believe Box is more favorable than Marketo.

Valuation and Earnings

This table compares Marketo and Box’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marketo N/A N/A N/A ($1.71) -20.34
Box $425.67 million 5.74 -$116.54 million ($1.18) -15.75

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

Profitability

This table compares Marketo and Box’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marketo -23.20% -98.33% -27.18%
Box -36.01% -187.98% -33.25%

Risk and Volatility

Marketo has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Box has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Insider & Institutional Ownership

36.6% of Box shares are owned by institutional investors. 22.3% of Box shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Box beats Marketo on 7 of the 10 factors compared between the two stocks.

Marketo Company Profile

Marketo, Inc. is a United States-based provider of a cloud-based Engagement Marketing software platform, which enables organizations to involve in engagement marketing. The Company’s platform offers a range applications across various categories, including Marketing Automation, which helps to organize personalized multi-channel marketing campaigns and workflows; Email Marketing, which provides the ability to tap the insights captured in the Audience Hub to send e-mail messages; Mobile Engagement, which engages customers on their mobile devices; Digital Ads, which allows marketers to focus on behavioral data captured in the Audience Hub for personalized digital advertisements; Web Personalization, which helps in personalizing experiences to engage people; Marketing Analytics; Predictive Content, which discovers Website assets, such as e-books and case studies; Marketing Calendar, and Sales Insight. It offers solutions, such as Lead Management solution and Consumer Marketing solution.

Box Company Profile

Box, Inc. provides an enterprise content management platform that enables organizations of all sizes to manage enterprise content while allowing access and sharing of this content from anywhere, on any device. With the Company’s Software-as-a-Service (SaaS) cloud-based platform, users can collaborate on content both internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security and compliance features to comply with internal policies and industry regulations. Its platform enables people to view, share and collaborate on content, across various file formats and media types. The software integrates with enterprise business applications, and is compatible with various application environments, operating systems and devices, ensuring that workers have access to their business content. It offers individuals a free basic version of the Box platform that allows them to experience its solution.

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