Critical Review: Sportradar Group (NASDAQ:SRAD) and AdTheorent (NASDAQ:ADTH)

Sportradar Group (NASDAQ:SRAD) and AdTheorent (NASDAQ:ADTH) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Volatility & Risk

Sportradar Group has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, AdTheorent has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sportradar Group and AdTheorent’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportradar Group	$949.77 million	13.18	$37.51 million	$0.12	93.84
AdTheorent	$170.81 million	1.71	$10,000.00	($0.01)	-321.00

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Sportradar Group and AdTheorent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportradar Group	0	3	6	0	2.67
AdTheorent	0	2	2	0	2.50

Sportradar Group presently has a consensus price target of $13.89, indicating a potential upside of 23.35%. AdTheorent has a consensus price target of $4.69, indicating a potential upside of 46.03%. Given AdTheorent’s higher possible upside, analysts plainly believe AdTheorent is more favorable than Sportradar Group.

Profitability

This table compares Sportradar Group and AdTheorent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sportradar Group	4.27%	4.54%	2.27%
AdTheorent	N/A	0.07%	0.06%

Institutional & Insider Ownership

37.7% of AdTheorent shares are owned by institutional investors. 7.1% of AdTheorent shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Sportradar Group beats AdTheorent on 11 of the 14 factors compared between the two stocks.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in St. Gallen, Switzerland.

About AdTheorent

AdTheorent Holding Company, Inc., a digital media platform, provides programmatic digital advertising services for advertising agency and brand customers in the United States, Canada, and internationally. It uses machine learning and advanced data science to organize, analyze, and operationalize non-sensitive data to deliver real-world value for customers. The company offers predictive targeting solutions across various customer industry verticals and consumer screens, including customized targeting, measurement, and analytical services; and location-based targeting and geo-intelligence solutions. AdTheorent Holding Company, Inc. was founded in 2012 and is headquartered in New York, New York.