Critical Survey: DoubleVerify (DV) & Its Peers

DoubleVerify (NYSE:DV) is one of 953 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare DoubleVerify to similar businesses based on the strength of its valuation, institutional ownership, profitability, dividends, risk, analyst recommendations and earnings.

Institutional & Insider Ownership

97.3% of DoubleVerify shares are held by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are held by institutional investors. 4.0% of DoubleVerify shares are held by insiders. Comparatively, 19.9% of shares of all “Software” 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.

Earnings and Valuation

This table compares DoubleVerify and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DoubleVerify	$748.29 million	$50.65 million	33.91
DoubleVerify Competitors	$1.81 billion	$385.92 million	109.81

DoubleVerify’s competitors have higher revenue and earnings than DoubleVerify. DoubleVerify 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.

Analyst Recommendations

This is a summary of current ratings and target prices for DoubleVerify and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleVerify	0	14	2	0	2.12
DoubleVerify Competitors	5730	21457	44750	1492	2.57

DoubleVerify currently has a consensus target price of $13.52, indicating a potential downside of 0.32%. As a group, “Software” companies have a potential upside of 26.46%. Given DoubleVerify’s competitors stronger consensus rating and higher possible upside, analysts plainly believe DoubleVerify has less favorable growth aspects than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoubleVerify	8.22%	7.25%	6.09%
DoubleVerify Competitors	-612.69%	20.88%	-8.98%

Risk and Volatility

DoubleVerify has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, DoubleVerify’s competitors have a beta of 1.34, indicating that their average share price is 34% more volatile than the S&P 500.

Summary

DoubleVerify competitors beat DoubleVerify on 10 of the 13 factors compared.

About DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. In addition, the company provides DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.