Criteo (NASDAQ:CRTO) versus Gambling.com Group (NASDAQ:GAMB) Head-To-Head Contrast

Gambling.com Group (NASDAQ:GAMB) and Criteo (NASDAQ:CRTO) are both small-cap communication services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Risk and Volatility

Gambling.com Group has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Criteo has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Profitability

This table compares Gambling.com Group and Criteo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gambling.com Group	-27.44%	27.61%	11.20%
Criteo	5.60%	14.33%	8.05%

Earnings and Valuation

This table compares Gambling.com Group and Criteo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gambling.com Group	$165.25 million	0.40	-$32.93 million	($1.29)	-1.46
Criteo	$1.94 billion	0.43	$144.60 million	$1.97	8.68

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

Institutional & Insider Ownership

72.3% of Gambling.com Group shares are held by institutional investors. Comparatively, 94.3% of Criteo shares are held by institutional investors. 57.9% of Gambling.com Group shares are held by insiders. Comparatively, 1.5% of Criteo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Gambling.com Group and Criteo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gambling.com Group	2	2	4	1	2.44
Criteo	2	4	6	0	2.33

Gambling.com Group currently has a consensus target price of $6.43, indicating a potential upside of 241.95%. Criteo has a consensus target price of $22.65, indicating a potential upside of 32.53%. Given Gambling.com Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Gambling.com Group is more favorable than Criteo.

Summary

Criteo beats Gambling.com Group on 8 of the 15 factors compared between the two stocks.

About Gambling.com Group

Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.

About Criteo

Criteo S.A., a technology company, provides marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's Criteo Shopper Graph, which derives clients' proprietary commerce data, such as transaction activity on their digital properties. It also offers Criteo AI Engine solutions, including lookalike finder, recommendation, and predictive bidding algorithms; recommendation algorithms, dynamic creative optimization+, sponsored product placement algorithms, and other product placement algorithms. The company's technology comprises data synchronization, storage, and analysis of distributed computing infrastructure in various geographies, as well as fast data collection and retrieval using multi-layered caching infrastructure; and experimentation platform, an offline/online testing platform to enhance the capabilities and effectiveness of prediction models. In addition, it provides Criteo Marketing Solutions that allow commerce companies to address various marketing goals by engaging their consumers with personalized ads across the web, mobile, and offline store environments; and Criteo Retail Media solutions, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their data and audiences through personalized ads, either on their own digital property or on the open Internet. Further, the company offers real-time advertising technology and trading infrastructure, delivering advanced media buying, selling, and packaging capabilities for media owners, agencies, performance advertisers, and third-party AdTech platforms. It serves companies in digital retail, travel, and classifieds sectors. Criteo S.A. was incorporated in 2005 and is headquartered in Paris, France.