Teads (NASDAQ:TEAD – Get Free Report) and Zeta Global (NYSE:ZETA – Get Free Report) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Volatility and Risk
Teads has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Zeta Global has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.
Earnings & Valuation
This table compares Teads and Zeta Global”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teads | $1.30 billion | 0.10 | -$517.07 million | ($5.24) | -0.25 |
| Zeta Global | $1.30 billion | 3.83 | -$31.51 million | ($0.11) | -182.32 |
Zeta Global has higher revenue and earnings than Teads. Zeta Global is trading at a lower price-to-earnings ratio than Teads, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Teads and Zeta Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teads | 1 | 3 | 1 | 0 | 2.00 |
| Zeta Global | 1 | 3 | 10 | 0 | 2.64 |
Teads presently has a consensus price target of $3.27, indicating a potential upside of 151.28%. Zeta Global has a consensus price target of $27.83, indicating a potential upside of 38.79%. Given Teads’ higher possible upside, research analysts clearly believe Teads is more favorable than Zeta Global.
Profitability
This table compares Teads and Zeta Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teads | -39.14% | -17.58% | -3.50% |
| Zeta Global | -1.62% | 2.91% | 1.70% |
Institutional & Insider Ownership
60.4% of Teads shares are owned by institutional investors. Comparatively, 87.8% of Zeta Global shares are owned by institutional investors. 12.0% of Teads shares are owned by insiders. Comparatively, 10.7% of Zeta Global shares are owned by 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
Zeta Global beats Teads on 10 of the 14 factors compared between the two stocks.
About Teads
Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.
About Zeta Global
Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. The company’s Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as agile intelligence suite, which synthesizes Zeta’s data and data generated by its customers to uncover consumer insights that are translated into marketing programs; and CDP, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. Zeta Global Holdings Corp. was incorporated in 2007 and is headquartered in New York, New York.
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