News (NASDAQ:NWSA – Get Free Report) and PubMatic (NASDAQ:PUBM – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for News and PubMatic, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| News | 0 | 1 | 5 | 0 | 2.83 |
| PubMatic | 1 | 1 | 11 | 0 | 2.77 |
News presently has a consensus price target of $38.50, suggesting a potential upside of 35.14%. PubMatic has a consensus price target of $19.73, suggesting a potential upside of 6.06%. Given News’ stronger consensus rating and higher probable upside, equities analysts clearly believe News is more favorable than PubMatic.
Risk & Volatility
Institutional and Insider Ownership
67.0% of News shares are held by institutional investors. Comparatively, 64.3% of PubMatic shares are held by institutional investors. 13.6% of News shares are held by insiders. Comparatively, 27.8% of PubMatic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares News and PubMatic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| News | 6.35% | 7.09% | 4.27% |
| PubMatic | -4.66% | -5.41% | -1.99% |
Valuation & Earnings
This table compares News and PubMatic”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| News | $9.03 billion | 1.71 | $573.00 million | $1.03 | 27.66 |
| PubMatic | $282.93 million | 2.99 | -$14.46 million | ($0.30) | -62.00 |
News has higher revenue and earnings than PubMatic. PubMatic is trading at a lower price-to-earnings ratio than News, indicating that it is currently the more affordable of the two stocks.
Summary
News beats PubMatic on 10 of the 14 factors compared between the two stocks.
About News
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children’s, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
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.
Receive News & Ratings for News Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for News and related companies with MarketBeat.com's FREE daily email newsletter.
