Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, telephone directory publisher SuperMedia (Nasdaq: SPMD) has received a distressing two-star ranking.

With that in mind, let's take a closer look at SuperMedia's business and see what CAPS investors are saying about the stock right now.

SuperMedia facts



Market Cap

$666.6 million



Trailing-12-Month Revenue

$2.5 billion


CEO Scott Klein (since 2008)

CFO Samuel Jones (since 2008)

Return on Assets (Average, Past 3 Years)


Compound Annual Revenue Growth (Over Past 3 Years)



$212.0 million / $2.8 billion


Google (Nasdaq: GOOG)


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 22% of the 23 members who have rated SuperMedia believe the stock will underperform the S&P 500 going forward. These bears include DarthMaul09 and MagicDiligence.

Two weeks ago, DarthMaul09 touched on SuperMedia's seemingly outdated business model: "Like printed newspapers and magazines who live on ad revenue, I have a hard time seeing how this company will outperform the Google app or another iPhone app which can give you the same information faster."

In a pitch from last month, MagicDiligence shares a little on bearish background on the stock. Here's an excerpt:

Traditionally the Yellow Pages are an excellent source for local businesses to acquire customer leads. Idearc was spun off from Verizon in 2006, filed for bankruptcy protection in March 2009, and reemerged with the new moniker at the start of this year. ...

From a big-picture perspective, though, there is little growth potential in SuperMedia. ... In the online space, is at a major disadvantage to the big search engines like Google, which already incorporate locale when serving search ads. Location-based services have been pushed heavily in many mobile device applications, further eroding any advantages SuperMedia may have had. In all likelihood, SuperMedia's revenues will continue their long, steady decline.

What do you think about SuperMedia, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Google is a Motley Fool Rule Breakers pick. The Fool's disclosure policy always gets a perfect score.