Trade Desk (NASDAQ:TTD) and Autoweb (NASDAQ:AUTO) Critical Review

Trade Desk (NASDAQ:TTD) and Autoweb (NASDAQ:AUTO) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Earnings & Valuation

This table compares Trade Desk and Autoweb’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trade Desk $477.29 million 22.76 $88.14 million $1.92 127.11
Autoweb $125.59 million 0.37 -$38.82 million ($1.10) -3.19

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

Volatility & Risk

Trade Desk has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500. Comparatively, Autoweb has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500.

Insider & Institutional Ownership

67.4% of Trade Desk shares are held by institutional investors. Comparatively, 20.1% of Autoweb shares are held by institutional investors. 17.4% of Trade Desk shares are held by insiders. Comparatively, 38.4% of Autoweb shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Trade Desk 17.41% 24.41% 9.12%
Autoweb -27.15% -40.01% -25.32%

Analyst Ratings

This is a summary of recent recommendations and price targets for Trade Desk and Autoweb, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trade Desk 1 6 10 0 2.53
Autoweb 0 1 1 0 2.50

Trade Desk presently has a consensus price target of $191.25, suggesting a potential downside of 21.63%. Autoweb has a consensus price target of $5.00, suggesting a potential upside of 42.45%. Given Autoweb’s higher possible upside, analysts plainly believe Autoweb is more favorable than Trade Desk.

Summary

Trade Desk beats Autoweb on 12 of the 14 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 Autoweb

AutoWeb, Inc. operates as a digital marketing company for the automotive industry in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, which allows consumers to search for used vehicles according to search parameters, such as price, make, model, mileage, year, and location of the vehicle. The company's products and services also comprise WebLeads+ that offers various coupon options, which display marketing messages to consumers visiting the dealer's Website; and Payment Pro, a dealer Website conversion tool that offers consumers real-time online monthly payment information, as well as sells fixed placement advertising across its Website to automotive advertisers. It owns and operates automotive Websites that offers consumers with the information and tools to aid them with their automotive purchase decisions; an automotive search engine that enables manufactures and dealers to optimize advertising campaigns; and AutoWeb Traffic Product, a pay-per-click advertising program that offer targeted offers to consumers based on make, model, and geographic location. The company was formerly known as Autobytel Inc. and changed its name to AutoWeb, Inc. in October 2017. AutoWeb, Inc. was founded in 1995 and is headquartered in Irvine, California.

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