Reviewing PubMatic (PUBM) and Its Peers

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PubMatic	-0.49%	-0.60%	-0.22%
PubMatic Competitors	-19.22%	-48.93%	-4.92%

Valuation and Earnings

This table compares PubMatic and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PubMatic	$282.93 million	-$14.46 million	-412.20
PubMatic Competitors	$3.00 billion	$35.12 million	-3.45

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

Institutional & Insider Ownership

64.3% of PubMatic shares are owned by institutional investors. Comparatively, 38.1% of shares of all “Media” companies are owned by institutional investors. 27.8% of PubMatic shares are owned by company insiders. Comparatively, 17.5% of shares of all “Media” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

PubMatic has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, PubMatic’s competitors 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 current recommendations and price targets for PubMatic and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PubMatic	1	1	12	0	2.79
PubMatic Competitors	2345	6940	10802	493	2.46

PubMatic currently has a consensus price target of $21.00, suggesting a potential upside of 1.89%. As a group, “Media” companies have a potential upside of 29.19%. Given PubMatic’s competitors higher possible upside, analysts clearly believe PubMatic has less favorable growth aspects than its competitors.

Summary

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

About PubMatic

PubMatic is a digital advertising technology company that operates a sell-side platform for publishers and app developers. Its cloud-based platform helps clients manage and monetize advertising inventory by connecting it with demand from advertisers and media buyers through programmatic advertising. The company’s services support advertising across web, mobile app, video and connected TV environments. Its tools include real-time bidding, inventory management, audience and data solutions, and analytics designed to help publishers optimize advertising revenue and give buyers access to digital audiences.