Contrasting Trade Desk (NASDAQ:TTD) & Xunlei (NASDAQ:XNET)

Trade Desk (NASDAQ:TTD) and Xunlei (NASDAQ:XNET) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Risk and Volatility

Trade Desk has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Xunlei has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trade Desk	14.57%	16.91%	7.28%
Xunlei	185.71%	1.47%	1.24%

Valuation & Earnings

This table compares Trade Desk and Xunlei”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trade Desk	$2.90 billion	3.50	$443.30 million	$0.88	24.50
Xunlei	$462.41 million	0.82	$1.05 billion	$13.67	0.44

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Trade Desk and Xunlei, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trade Desk	5	21	11	1	2.21
Xunlei	0	1	0	0	2.00

Trade Desk presently has a consensus target price of $33.91, indicating a potential upside of 57.29%. Given Trade Desk’s stronger consensus rating and higher probable upside, equities analysts clearly believe Trade Desk is more favorable than Xunlei.

Insider and Institutional Ownership

67.8% of Trade Desk shares are owned by institutional investors. Comparatively, 5.1% of Xunlei shares are owned by institutional investors. 11.4% of Trade Desk shares are owned by company insiders. Comparatively, 21.7% of Xunlei shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Trade Desk beats Xunlei on 10 of the 15 factors compared between the two stocks.

About Trade Desk

The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.