NEW YORK (TheStreet) -- comScore (Nasdaq:SCOR) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.
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- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, COMSCORE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- SCOR has underperformed the S&P 500 Index, declining 5.54% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for COMSCORE INC is currently very high, coming in at 72.00%. Regardless of SCOR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SCOR's net profit margin of -10.90% significantly underperformed when compared to the industry average.
- SCOR's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
- COMSCORE INC has improved earnings per share by 23.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COMSCORE INC reported poor results of -$0.49 versus -$0.05 in the prior year. This year, the market expects an improvement in earnings ($0.08 versus -$0.49).
-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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