Head to Head Analysis: Pintec Technology (NASDAQ:PT) and Magnite (NASDAQ:MGNI)

Pintec Technology (NASDAQ:PT) and Magnite (NASDAQ:MGNI) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Insider and Institutional Ownership

6.6% of Pintec Technology shares are owned by institutional investors. Comparatively, 73.4% of Magnite shares are owned by institutional investors. 4.1% of Pintec Technology shares are owned by company insiders. Comparatively, 3.8% of Magnite shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Pintec Technology and Magnite”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pintec Technology	$35.14 million	0.41	-$11.12 million	N/A	N/A
Magnite	$674.62 million	3.58	-$159.18 million	$0.20	85.50

Pintec Technology has higher earnings, but lower revenue than Magnite.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Pintec Technology and Magnite, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pintec Technology	0	1	0	0	2.00
Magnite	0	1	11	0	2.92

Magnite has a consensus target price of $19.58, indicating a potential upside of 14.52%. Given Magnite’s stronger consensus rating and higher possible upside, analysts plainly believe Magnite is more favorable than Pintec Technology.

Profitability

This table compares Pintec Technology and Magnite’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pintec Technology	N/A	N/A	N/A
Magnite	2.62%	4.64%	1.25%

Risk and Volatility

Pintec Technology has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Magnite has a beta of 2.87, meaning that its stock price is 187% more volatile than the S&P 500.

Summary

Magnite beats Pintec Technology on 10 of the 12 factors compared between the two stocks.

About Pintec Technology

Pintec Technology Holdings Limited, together with its subsidiaries, engages in the provision of technology-enabled financial and digital services to the ecosystem of MSMEs and SMEs in the People’s Republic of China. The company connects business partners and financial partners on its open platform and enables them to provide financial services to end users. It provides point-of-sale financing solutions to its business partners on their platforms or on its own platform under the Dumiao brand; and business installment loan solutions to its business partners on their platforms or on its own platform. The company also offers wealth management solutions, including a fund distribution solution that enables partners to offer and distribute mutual fund products to their customers, either under its Hongdian brand or as a white label solution; and a robo-advisory solution under the Polaris brand which enables its financial and business partners to provide robo-advisory services to their customers. In addition, it provides international installment loan solutions; Myfin, an insurance solution, that enables its partners to offer and distribute insurance products to its users; value added tools to business and financial partners for deploying its solutions, monitor and evaluate performance, and scale their business; digital marketing tools to target users, implement intelligent digital marketing activities, and increase marketing efficiencies and effectiveness; and real time monitoring tools that offer comprehensive and visualized performance monitoring interface. The company was founded in 2012 and is headquartered in Beijing, the People’s Republic of China.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.