Reviewing NerdWallet (NASDAQ:NRDS) and Betawave (OTCMKTS:BWAV)

Betawave (OTCMKTS:BWAV) and NerdWallet (NASDAQ:NRDS) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares Betawave and NerdWallet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Betawave	N/A	N/A	N/A	N/A	N/A
NerdWallet	$637.50 million	1.65	-$11.80 million	($0.14)	-102.36

Betawave has higher earnings, but lower revenue than NerdWallet.

Profitability

This table compares Betawave and NerdWallet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Betawave	N/A	N/A	N/A
NerdWallet	-1.65%	-2.90%	-2.45%

Analyst Recommendations

This is a breakdown of recent ratings for Betawave and NerdWallet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Betawave	0	0	0	0	0.00
NerdWallet	0	2	4	0	2.67

NerdWallet has a consensus price target of $17.00, suggesting a potential upside of 18.63%. Given NerdWallet’s stronger consensus rating and higher probable upside, analysts clearly believe NerdWallet is more favorable than Betawave.

Insider and Institutional Ownership

38.8% of NerdWallet shares are owned by institutional investors. 45.9% of NerdWallet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

NerdWallet beats Betawave on 6 of the 9 factors compared between the two stocks.

About Betawave

Betawave Corporation provides online advertising services for a portfolio of websites. It delivers advertising to audiences of highly-engaged users. The company has a network of websites in three online categories: immersive casual gaming, virtual world, and social play and entertainment. It specializes in helping brand marketers reach the attentive audiences on various Web sites through ad formats. It serves advertisers in various categories, including consumer packaged goods, entertainment, consumer electronics and software, and retail. The company's advertising in the publisher sites includes direct sales category comprising IAB graphical advertising and rich media/immersive advertising; and remnant inventory category, which are advertising inventory on a website that is not sold directly to an advertiser. It sells its inventory and marketing services through a sales and marketing organization in the United States. The company was formerly known as GoFish Corporation and changed its name to Betawave Corporation in January 2009. Betawave Corporation was incorporated in 2003 and is based in San Francisco, California.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.