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Bullboard - Stock Discussion Forum Ackroo Inc V.AKR

Alternate Symbol(s):  AKRFF

Ackroo Inc. acquires, integrates and manages gift card, loyalty marketing, payment and point-of-sale solutions used by merchants of all sizes. It develops and sells an online loyalty and rewards platform. Its self-serve, data driven, cloud-based marketing platform helps merchants in-store and online process and manage loyalty, gift card and promotional transactions at the point of sale. Its... see more

TSXV:AKR - Post Discussion

Ackroo Inc > Ackroo vs Snipp Interactive
View:
Post by Torontojay on Sep 26, 2021 10:37am

Ackroo vs Snipp Interactive

Before I begin to compare the following 2 companies let me say that financials for Snipp Interactive are in $US whereas Ackroo is in $Cad. As of year end 2020, about 85% of Snipp revenues are derived from US customers. As of June 2021, 10% of Ackroo's clients are US customers while the rest are Canadian. 


Ebitda = adjusted ebitda 
M = ebitda margins 
EV= Enterprise Value 

2020.                       Revenue.              Ebitda           M 

Ackroo ($Cad).        $6,047,576.        $1,638,587    27.1%

Snipp ($US)             $8,692,274         $346,153      3.98%

 


2021 ttm                  Revenue              Ebitda           M

Ackroo ($cad).         $5,874,727         $1,150,418.   19.6%

Snipp ($US)             $9,903,613         $880,782       8.9%

 

Commentary : So far it looks as if Snipp is off to a better start than Ackroo; however, keep in mind that Ackroo customers faced a severe lockdown  due to Covid. Ackroo has recently made an acquisition to further penetrate the US market which would give them further diversity. Ackroo has a much higher ebitda margin and a larger proportion of their revenue comes from recurring services. The enterprise value for Ackroo and Snipp is Cad $21,463,519.8  and US $26,414,407 respectively. 
 

2021 ttm                   EV/sales             EV/Ebitda 

Ackroo                         3.65.                    18.65

Snipp                           2.67                     29.98

Ackroo is 36.7% more expensive on a EV to sales ratio but Snipp interactive is 60.7% more expensive on an EV to ebitda ratio. Keep in mind that the first ratio is more stable whereas the second ratio is more variable and volatile. 

It is my opinion that Ackroo is the better buy. The majority of their revenue is predictable and they have demonstrated that they can deliver a higher ebitda margin than their competitors. I believe the penetration into the US market will be a BIG win for shareholders.

Comment by skibum45 on Sep 28, 2021 12:14am
Nice post Torontojay. I was a little underwhelmed with AKR's last 2 quarters, but not surprised. I know people are tiring of COVID 'excuses' but think their customer base took a hit more than some others. I've looked at Snipp as well... thought about it, but ultimately didn't buy any while not selling any Ackroo. Time will tell...
Comment by prophetoffacts on Sep 28, 2021 4:40pm
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