PubMatic (NASDAQ:PUBM) vs. Match Group (NASDAQ:MTCH) Head-To-Head Analysis

PubMatic (NASDAQ:PUBM) and Match Group (NASDAQ:MTCH) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Earnings and Valuation

This table compares PubMatic and Match Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PubMatic	$267.01 million	4.11	$8.88 million	$0.21	104.58
Match Group	$3.36 billion	3.01	$651.54 million	$2.30	16.58

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

Institutional & Insider Ownership

64.3% of PubMatic shares are owned by institutional investors. Comparatively, 94.1% of Match Group shares are owned by institutional investors. 2.9% of PubMatic shares are owned by company insiders. Comparatively, 0.7% of Match Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares PubMatic and Match Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PubMatic	4.42%	4.21%	1.95%
Match Group	19.03%	-433.59%	14.95%

Volatility and Risk

PubMatic has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Match Group has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for PubMatic and Match Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PubMatic	0	2	5	0	2.71
Match Group	0	7	12	0	2.63

PubMatic currently has a consensus target price of $23.33, suggesting a potential upside of 6.25%. Match Group has a consensus target price of $41.79, suggesting a potential upside of 9.58%. Given Match Group’s higher possible upside, analysts clearly believe Match Group is more favorable than PubMatic.

Summary

Match Group beats PubMatic on 9 of the 14 factors compared between the two stocks.

About PubMatic

PubMatic, Inc., a technology company, engages in the provision of a cloud infrastructure platform that enables real-time programmatic advertising transactions for digital content creators, advertisers, agencies, agency trading desks, and demand side platforms worldwide. Its PubMatic SSP, a sell-side platform, used for the purchase and sale of digital advertising inventory for publishers and buyers. The company also provides solutions, including OpenWrap, a header bidding solution; Openwrap OTT, a prebid-powered unified bidding solution; Openwrap SDK, an enterprise-grade management tools and analytics; Connect, a solution that provides additional data and insights to publishers and buyers; Activate, which allows buyers to execute direct deals on its platform across publisher inventory; Convert, a commerce media solution; and Identity Hub, an ID management tool for publishers that leverages specialized technology?infrastructure?to simplify the complex alternative identifier marketplace. Its platform supports an array of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top (OTT), connected television, and media. The company was incorporated in 2006 and is based in Redwood City, California.

About Match Group

Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users' likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, Texas.