PubMatic (PUBM) versus Its Rivals Financial Analysis

PubMatic (NASDAQ:PUBM) is one of 257 public companies in the “Media” industry, but how does it contrast to its competitors? We will compare PubMatic to related businesses based on the strength of its earnings, dividends, institutional ownership, profitability, risk, valuation and analyst recommendations.

Institutional & Insider Ownership

64.3% of PubMatic shares are held by institutional investors. Comparatively, 37.7% of shares of all “Media” companies are held by institutional investors. 27.8% of PubMatic shares are held by insiders. Comparatively, 17.6% of shares of all “Media” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for PubMatic and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PubMatic	1	1	11	0	2.77
PubMatic Competitors	2328	6916	10768	490	2.46

PubMatic presently has a consensus target price of $19.91, indicating a potential upside of 4.62%. As a group, “Media” companies have a potential upside of 28.73%. Given PubMatic’s competitors higher probable upside, analysts clearly believe PubMatic has less favorable growth aspects than its competitors.

Profitability

This table compares PubMatic and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PubMatic	-4.66%	-5.41%	-1.99%
PubMatic Competitors	-18.35%	-47.68%	-4.81%

Valuation & Earnings

This table compares PubMatic and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PubMatic	$282.93 million	-$14.46 million	-63.43
PubMatic Competitors	$2.97 billion	$35.12 million	-0.10

PubMatic’s competitors have higher revenue and earnings than PubMatic. PubMatic is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

PubMatic has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, PubMatic’s competitors have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Summary

PubMatic beats its competitors on 8 of the 13 factors compared.

PubMatic Company Profile

PubMatic, Inc., a technology company, engages in the provision of a cloud infrastructure platform that enables real-time programmatic advertising transactions for digital content creators, advertisers, agencies, agency trading desks, and demand side platforms worldwide. Its PubMatic SSP, a sell-side platform, used for the purchase and sale of digital advertising inventory for publishers and buyers. The company also provides solutions, including OpenWrap, a header bidding solution; Openwrap OTT, a prebid-powered unified bidding solution; Openwrap SDK, an enterprise-grade management tools and analytics; Connect, a solution that provides additional data and insights to publishers and buyers; Activate, which allows buyers to execute direct deals on its platform across publisher inventory; Convert, a commerce media solution; and Identity Hub, an ID management tool for publishers that leverages specialized technology?infrastructure?to simplify the complex alternative identifier marketplace. Its platform supports an array of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top (OTT), connected television, and media. The company was incorporated in 2006 and is based in Redwood City, California.