PubMatic (NASDAQ:PUBM) and Locafy (NASDAQ:LCFY) Head-To-Head Review

PubMatic (NASDAQ:PUBM) and Locafy (NASDAQ:LCFY) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares PubMatic and Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PubMatic	5.96%	6.12%	2.58%
Locafy	-58.48%	-64.65%	-36.58%

Analyst Ratings

This is a breakdown of recent ratings and price targets for PubMatic and Locafy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PubMatic	0	4	6	0	2.60
Locafy	0	0	0	0	0.00

PubMatic presently has a consensus target price of $19.11, indicating a potential upside of 58.47%. Given PubMatic’s stronger consensus rating and higher probable upside, equities research analysts plainly believe PubMatic is more favorable than Locafy.

Risk & Volatility

PubMatic has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Institutional and Insider Ownership

64.3% of PubMatic shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 26.4% of PubMatic shares are held by company insiders. Comparatively, 28.7% of Locafy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares PubMatic and Locafy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PubMatic	$288.38 million	2.03	$8.88 million	$0.08	150.75
Locafy	$3.85 million	1.43	-$1.96 million	($1.23)	-3.24

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

Summary

PubMatic beats Locafy on 12 of the 14 factors compared between the two stocks.

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.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.