Analyzing TechTarget (NASDAQ:TTGT) and Ziff Davis (NASDAQ:ZD)

TechTarget (NASDAQ:TTGT – Get Rating) and Ziff Davis (NASDAQ:ZD – Get Rating) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Profitability

This table compares TechTarget and Ziff Davis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TechTarget	13.99%	23.59%	6.96%
Ziff Davis	4.58%	15.76%	8.17%

Volatility and Risk

TechTarget has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Ziff Davis has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

99.6% of TechTarget shares are held by institutional investors. Comparatively, 99.1% of Ziff Davis shares are held by institutional investors. 8.9% of TechTarget shares are held by company insiders. Comparatively, 4.5% of Ziff Davis shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for TechTarget and Ziff Davis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TechTarget	1	3	3	0	2.29
Ziff Davis	0	3	6	0	2.67

TechTarget currently has a consensus price target of $48.63, indicating a potential upside of 41.02%. Ziff Davis has a consensus price target of $98.80, indicating a potential upside of 33.28%. Given TechTarget’s higher possible upside, equities research analysts plainly believe TechTarget is more favorable than Ziff Davis.

Valuation & Earnings

This table compares TechTarget and Ziff Davis’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TechTarget	$297.49 million	3.32	$41.61 million	$1.30	26.52
Ziff Davis	$1.39 billion	2.52	$63.76 million	$1.25	59.30

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

About TechTarget

(Get Rating)

TechTarget, Inc. engages in the provision of data and analytics and software solutions for purchase intent-driven marketing and sales data which delivers business impact for business-to-business companies. It operates through the North America and International geographical segments. Its solutions include tech marketing, ABM, tech sales, and intent-driven services. The company was founded by Don Hawk and Greg Strakosch on September 14, 1999 and is headquartered in Newton, MA.

About Ziff Davis

(Get Rating)

Ziff Davis, Inc. is a digital media and internet company. It operates through the following segments: Digital Media and Cybersecurity and Martech. The Digital Media segment consists of a portfolio of web properties and apps which include IGN, RetailMeNot, Mashable, PCMag, Humble Bundle,Speedtest, Offers, Black Friday, MedPageToday, Everyday Health, BabyCenter and What to Expect, among others. The Cybersecurity and Martech segment engages in delivering and consuming real time business technology services, resources and solutions over the internet. The company was founded by Jaye Muller and John F. Rieley in December 1995 and is headquartered in New York, NY.