CyberAgent (OTCMKTS:CYGIY) & Trade Desk (NASDAQ:TTD) Critical Analysis

Trade Desk (NASDAQ:TTD) and CyberAgent (OTCMKTS:CYGIY) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility and Risk

Trade Desk has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Valuation & Earnings

This table compares Trade Desk and CyberAgent”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trade Desk	$2.44 billion	6.85	$393.08 million	$0.87	39.78
CyberAgent	$5.86 billion	0.75	$212.18 million	$0.20	21.60

Trade Desk has higher earnings, but lower revenue than CyberAgent. CyberAgent is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Trade Desk and CyberAgent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trade Desk	15.72%	16.00%	7.40%
CyberAgent	3.62%	14.04%	7.00%

Analyst Ratings

This is a summary of current ratings and price targets for Trade Desk and CyberAgent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trade Desk	2	17	19	1	2.49
CyberAgent	0	0	0	0	0.00

Trade Desk presently has a consensus target price of $67.76, suggesting a potential upside of 95.76%. Given Trade Desk’s stronger consensus rating and higher possible upside, analysts plainly believe Trade Desk is more favorable than CyberAgent.

Insider and Institutional Ownership

67.8% of Trade Desk shares are held by institutional investors. 10.0% of Trade Desk shares are held 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

Trade Desk beats CyberAgent on 14 of the 15 factors compared between the two stocks.

About Trade Desk

The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.