Critical Comparison: The Trade Desk (TTD) vs. its Competitors
The Trade Desk (NASDAQ: TTD) is one of 29 publicly-traded companies in the “E-commerce & Auction Services” industry, but how does it weigh in compared to its peers? We will compare The Trade Desk to related companies based off the strength of its risk, valuation, dividends, earnings, profitability, analyst recommendations and institutional ownership.
This is a breakdown of current ratings and recommmendations for The Trade Desk and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Trade Desk||0||1||7||0||2.88|
|The Trade Desk Competitors||114||730||1553||87||2.65|
The Trade Desk presently has a consensus target price of $57.63, indicating a potential upside of 2.48%. All “E-commerce & Auction Services” companies have a potential upside of 9.29%. Given The Trade Desk’s peers higher probable upside, analysts clearly believe The Trade Desk has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares The Trade Desk and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|The Trade Desk||$251.52 million||$64.25 million||66.94|
|The Trade Desk Competitors||$5.20 billion||$852.82 million||-30.61|
The Trade Desk’s peers have higher revenue and earnings than The Trade Desk. The Trade Desk is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.
Insider & Institutional Ownership
62.8% of The Trade Desk shares are owned by institutional investors. Comparatively, 47.7% of shares of all “E-commerce & Auction Services” companies are owned by institutional investors. 26.9% of The Trade Desk shares are owned by insiders. Comparatively, 17.9% of shares of all “E-commerce & Auction Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares The Trade Desk and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Trade Desk||13.92%||26.34%||9.17%|
|The Trade Desk Competitors||-1,537.79%||-31.73%||-7.73%|
The Trade Desk beats its peers on 8 of the 12 factors compared.
The Trade Desk Company Profile
The Trade Desk, Inc. is a technology company. The Company provides a self-service platform that enables clients to purchase and manage digital advertising campaigns across various advertising formats, including display, video and social, and on a range of devices, including computers, mobile devices and connected television. Its platform enables a media planner or buyer at an advertising agency to purchase digital media programmatically on various media exchanges and sell-side platforms; acquire and use third-party data to optimize and measure digital advertising campaigns; deploy their, or their client’s, own first-party data in order to optimize campaign efficacy; link digital campaigns to offline sales results or other business objectives; access other services, such as its data management platform and publisher management platform marketplace, and use its user interface and application programming interfaces (APIs) to build their own technology on top of the Company’s platform.
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