Reviewing The Trade Desk (TTD) and The Competition

The Trade Desk (NASDAQ: TTD) is one of 29 publicly-traded companies in the “E-commerce & Auction Services” industry, but how does it compare to its competitors? We will compare The Trade Desk to related companies based on the strength of its profitability, institutional ownership, risk, analyst recommendations, dividends, valuation and earnings.

Earnings and Valuation

This table compares The Trade Desk and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
The Trade Desk $251.52 million $64.25 million 71.29
The Trade Desk Competitors $5.24 billion $860.40 million -32.05

The Trade Desk’s competitors have higher revenue and earnings than The Trade Desk. The Trade Desk is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

62.8% of The Trade Desk shares are held by institutional investors. Comparatively, 47.7% of shares of all “E-commerce & Auction Services” companies are held by institutional investors. 26.9% of The Trade Desk shares are held by insiders. Comparatively, 17.9% of shares of all “E-commerce & Auction Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares The Trade Desk and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Trade Desk 13.92% 26.34% 9.17%
The Trade Desk Competitors -1,538.29% -32.31% -7.94%

Analyst Recommendations

This is a breakdown of current ratings and target prices for The Trade Desk and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Trade Desk 0 1 7 0 2.88
The Trade Desk Competitors 114 733 1558 87 2.65

The Trade Desk currently has a consensus target price of $57.63, indicating a potential downside of 3.77%. As a group, “E-commerce & Auction Services” companies have a potential upside of 4.52%. Given The Trade Desk’s competitors higher probable upside, analysts clearly believe The Trade Desk has less favorable growth aspects than its competitors.

Summary

The Trade Desk beats its competitors on 8 of the 12 factors compared.

About The Trade Desk

The Trade Desk, Inc. is a technology company. The Company provides a self-service platform that enables clients to purchase and manage digital advertising campaigns across various advertising formats, including display, video and social, and on a range of devices, including computers, mobile devices and connected television. Its platform enables a media planner or buyer at an advertising agency to purchase digital media programmatically on various media exchanges and sell-side platforms; acquire and use third-party data to optimize and measure digital advertising campaigns; deploy their, or their client’s, own first-party data in order to optimize campaign efficacy; link digital campaigns to offline sales results or other business objectives; access other services, such as its data management platform and publisher management platform marketplace, and use its user interface and application programming interfaces (APIs) to build their own technology on top of the Company’s platform.

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