Trade Desk (NASDAQ:TTD) and Internap (NASDAQ:INAP) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Earnings and Valuation

This table compares Trade Desk and Internap’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trade Desk $477.29 million 21.97 $88.14 million $1.92 121.42
Internap $317.37 million 0.19 -$62.50 million ($3.01) -0.74

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

Institutional & Insider Ownership

68.9% of Trade Desk shares are owned by institutional investors. Comparatively, 61.9% of Internap shares are owned by institutional investors. 17.4% of Trade Desk shares are owned by company insiders. Comparatively, 6.4% of Internap shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Trade Desk and Internap, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trade Desk 1 8 6 0 2.33
Internap 0 0 6 0 3.00

Trade Desk presently has a consensus target price of $227.65, suggesting a potential downside of 2.35%. Internap has a consensus target price of $8.25, suggesting a potential upside of 268.30%. Given Internap’s stronger consensus rating and higher probable upside, analysts plainly believe Internap is more favorable than Trade Desk.

Profitability

This table compares Trade Desk and Internap’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trade Desk 17.44% 23.63% 9.06%
Internap -23.62% N/A -9.76%

Volatility & Risk

Trade Desk has a beta of 2.77, meaning that its stock price is 177% more volatile than the S&P 500. Comparatively, Internap has a beta of 3.02, meaning that its stock price is 202% more volatile than the S&P 500.

Summary

Trade Desk beats Internap on 10 of the 13 factors compared between the two stocks.

About Trade Desk

The Trade Desk, Inc., a technology company, provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally. The company's platform allows clients to manage integrated advertising campaigns in various advertising channels and formats, including display, video, audio, native and social, and on a multitude of devices, such as computers, mobile devices, and connected TV (CTV). It serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was founded in 2009 and is headquartered in Ventura, California.

About Internap

Internap Corp. engages in the provision of information technology infrastructure services. It operates through the following segments: INAP US and INAP INTL. The INAP US segment consists of U. S. Colocation, U. S. Cloud, and U. S. Network services based in the United States. The INAP INTL segment consists of these same services based in countries other than the United States, and Ubersmith. The company was founded in May 1996 and is headquartered in Reston, VA.

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