Financial Review: PubMatic (PUBM) and Its Peers

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

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PubMatic and its rivals, 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 price target of $19.91, suggesting a potential upside of 4.62%. As a group, “Media” companies have a potential upside of 28.73%. Given PubMatic’s rivals higher possible upside, analysts clearly believe PubMatic has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares PubMatic and its rivals gross 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 rivals have higher revenue and earnings than PubMatic. PubMatic is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares PubMatic and its rivals’ 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%

Insider and Institutional Ownership

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

Summary

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

About PubMatic

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.