Financial analysis: PubMatic (PUBM) versus its rivals


PubMatic (NASDAQ:PUBM – Get Rating) is one of 113 publicly traded companies in the ‘Computer programming, data processing and other computer-related fields’ industry, but how does it stack up against its competitors? We will compare PubMatic to similar companies based on strength of institutional ownership, analyst recommendations, profitability, risk, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of the current recommendations for PubMatic and its competitors, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
PubMatic 0 1 9 0 2.90
PubMatic Competitors 652 3593 8873 248 2.65

PubMatic currently has a consensus target price of $40.10, indicating a potential upside of 115.82%. As a group, companies in “Computer programming, data processing and other computer-related activities” have an upside potential of 60.49%. Given PubMatic’s stronger consensus rating and higher possible upside, analysts clearly believe that PubMatic is more favorable than its competitors.

Benefits and evaluation

This chart compares PubMatic’s revenue, earnings per share, and valuation to its competitors.

Gross revenue Net revenue Price/earnings ratio
PubMatic $226.91 million $56.60 million 18.58
PubMatic Competitors $7.85 billion $2.07 billion 15.13

PubMatic’s competitors have higher revenues and profits than PubMatic. PubMatic trades at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and risk

PubMatic has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, PubMatic’s competitors have a beta of 1.26, indicating that their average stock price is 26% more volatile than the S&P 500.

Profitability

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

Net margins Return on equity return on assets
PubMatic 23.74% 21.35% 10.82%
PubMatic Competitors -378.34% -15.18% -5.22%

Insider and Institutional Ownership

37.6% of PubMatic shares are held by institutional investors. In comparison, 56.4% of the shares of all companies in “Computer programming, data processing and other computer-related activities” are held by institutional investors. 1.2% of PubMatic shares are held by company insiders. By comparison, 13.1% of the shares of all companies in “Computer programming, data processing and other computer-related activities” are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock will outperform the market over the long term.

Summary

PubMatic beats its competitors on 7 of the 13 factors compared.

About PubMatic (Get an evaluation)

PubMatic, Inc. provides a cloud infrastructure platform that enables real-time programmatic advertising transactions for Internet content creators and advertisers worldwide. The Company’s solutions include Openwrap, a header bidding solution that provides enterprise-grade management and analytics tools; Openwrap OTT, a header bid management solution for OTT; Openwrap SDK, a header bidding solution for embedded developers; private market solutions; and media buying consoles. Additionally, it offers programmatic real-time bidding (RTB) technologies, which provide various selling options across screens and ad formats; quality digital ad inventory solutions to detect and filter invalid traffic and other nefarious activity; Ad-quality solutions targeting the reduction of security issues, quality issues, and performance issues; Identity Hub, an identity solution that enables the use of any advertiser’s preferred user ID in a scalable and privacy-compliant manner; Audience Encore, an audience data platform; and cross-platform video, a sell-side platform, which connects trusted video buyers with premium publishers. The company’s platform supports an array of ad formats and digital device types, including mobile apps, mobile web, desktop, display, video, over-the- -top (OTT), connected TV and media. PubMatic, Inc. was incorporated in 2006 and is based in Redwood City, California.



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Sarah J. Greer