System1 Group (SYS1) Competitors

M&C Saatchi (LON:SAA) and System1 Group (LON:SYS1) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, media sentiment, valuation, profitability and analyst recommendations.

Do analysts prefer SAA or SYS1?

M&C Saatchi presently has a consensus target price of GBX 201.67, indicating a potential upside of 39.08%. System1 Group has a consensus target price of GBX 695, indicating a potential upside of 178.00%. Given System1 Group's higher probable upside, analysts clearly believe System1 Group is more favorable than M&C Saatchi.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M&C Saatchi	0 Sell rating(s)	0 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	3.00
System1 Group	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00

Does the media favor SAA or SYS1?

In the previous week, System1 Group had 8 more articles in the media than M&C Saatchi. MarketBeat recorded 9 mentions for System1 Group and 1 mentions for M&C Saatchi. System1 Group's average media sentiment score of 0.51 beat M&C Saatchi's score of 0.09 indicating that System1 Group is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
M&C Saatchi	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
System1 Group	2 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has preferable earnings & valuation, SAA or SYS1?

M&C Saatchi has higher revenue and earnings than System1 Group. System1 Group is trading at a lower price-to-earnings ratio than M&C Saatchi, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M&C Saatchi	£395.42M	0.44	£11.09M	£0.12	1,224.66
System1 Group	£37.43M	0.85	£2.03M	£0.35	710.23

Is SAA or SYS1 more profitable?

System1 Group has a net margin of 6.77% compared to M&C Saatchi's net margin of 2.43%. M&C Saatchi's return on equity of 34.45% beat System1 Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
M&C Saatchi	2.43%	34.45%	10.04%
System1 Group	6.77%	20.43%	11.37%

Which has more volatility & risk, SAA or SYS1?

M&C Saatchi has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, System1 Group has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Do insiders & institutionals believe in SAA or SYS1?

18.2% of M&C Saatchi shares are held by institutional investors. Comparatively, 16.1% of System1 Group shares are held by institutional investors. 31.2% of M&C Saatchi shares are held by insiders. Comparatively, 33.7% of System1 Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Is SAA or SYS1 a better dividend stock?

M&C Saatchi pays an annual dividend of GBX 0.02 per share and has a dividend yield of 0.0%. System1 Group pays an annual dividend of GBX 0.05 per share and has a dividend yield of 0.0%. M&C Saatchi pays out 13.5% of its earnings in the form of a dividend. System1 Group pays out 14.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

System1 Group beats M&C Saatchi on 10 of the 17 factors compared between the two stocks.