Trade Desk (NASDAQ:TTD) & KnowBe4 (NASDAQ:KNBE) Financial Analysis


KnowBe4 (NASDAQ:KNBE – Get Rating) and Trade Desk (NASDAQ:TTD – Get Rating) are both industrial products companies, but which company is superior? We’ll compare the two companies based on their dividend strength, valuation, profitability, institutional ownership, earnings, risk, and analyst recommendations.

Institutional and insider ownership

73.4% of KnowBe4 shares are held by institutional investors. Comparatively, 63.4% of Trade Desk shares are held by institutional investors. 5.0% of KnowBe4 shares are held by insiders. By comparison, 10.8% of Trade Desk shares are held by insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company is poised for long-term growth.

Analyst Notes

This is a summary of recent recommendations and price targets for KnowBe4 and Trade Desk, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
KnowBe4 0 1 seven 0 2.88
Commercial counter 0 4 15 0 2.79

KnowBe4 currently has a consensus target price of $31.11, suggesting a potential upside of 65.57%. Trade Desk has a consensus target price of $89.94, suggesting a potential upside of 75.84%. Considering the higher possible upside of Trade Desk, analysts clearly believe that Trade Desk is more favorable than KnowBe4.

Profitability

This table compares net margins, return on equity and return on assets of KnowBe4 and Trade Desk.

Net margins Return on equity return on assets
KnowBe4 -4.74% -0.92% -0.36%
Commercial counter 7.78% 7.08% 3.14%

Benefits and evaluation

This table compares gross revenue, earnings per share and valuation of KnowBe4 and Trade Desk.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
KnowBe4 $246.30 million 1:33 p.m. -$11.85 million ($0.11) -170.82
Commercial counter $1.20 billion 20.73 $137.76 million $0.21 243.57

Trade Desk has higher revenue and profit than KnowBe4. KnowBe4 is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

KnowBe4 has a beta of 1.12, which means its stock price is 12% more volatile than the S&P 500. Comparatively, Trade Desk has a beta of 2.15, which means its stock price is 115% more volatile than the S&P 500.

Summary

Trade Desk beats KnowBe4 on 12 out of 14 factors compared between the two stocks.

About KnowBe4 (Get a rating)

KnowBe4, Inc. engages in the development, marketing and sale of its software-based security awareness platform as a service. The company provides a platform integrating security awareness training and phishing simulation with analytics and reporting that helps organizations manage the ongoing problem of social engineering. Its products include Kevin Mitnick Security Awareness Training, a security awareness training product; Compliance Plus, a compliance training product, which enables organizations to provide their employees with relevant, timely and engaging compliance content on a range of topics from data privacy to diversity, equity and diversity. ‘inclusion ; PhishER, its security orchestration, automation and response product, which enables security professionals to prioritize and automate security workflows in response to attacks targeting the human layer; and KnowBe4 Compliance Manager, its governance, risk and compliance product that enables organizations to analyze security risks and automate the management of compliance and audit functions. The company also offers Security Coach, a solution to address human behavior risks through human detection and response; and PasswordIQ which would be used to mitigate risks related to password hygiene issues, such as weak or breached passwords. It serves its customers directly through internal sales teams for large enterprises and small and medium-sized enterprises, as well as indirectly through channel partners and managed service providers. The company was formerly known as SEQRIT, LLC and changed its name to KnowBe4, Inc. in January 2016. KnowBe4, Inc. was founded in 2010 and is headquartered in Clearwater, Florida.

About Trade Desk (Get a rating)

Trade Desk, Inc. operates as a technology company in the United States and internationally. The Company operates a self-service, cloud-based platform that enables marketers to create, manage and optimize data-driven digital advertising campaigns across various advertising formats and channels, including display, video, digital, and digital advertising. audio, native and social media on various devices, such as computers, mobile devices and connected TV. It also provides data and other value-added services. The Company serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.



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Sarah J. Greer