The Trade Desk (NASDAQ: TTD) and Synacor (NASDAQ:SYNC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
Risk and Volatility
The Trade Desk has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, Synacor has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for The Trade Desk and Synacor, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Trade Desk||0||0||14||0||3.00|
The Trade Desk presently has a consensus price target of $71.36, indicating a potential downside of 14.02%. Synacor has a consensus price target of $4.83, indicating a potential upside of 141.67%. Given Synacor’s higher possible upside, analysts clearly believe Synacor is more favorable than The Trade Desk.
Earnings & Valuation
This table compares The Trade Desk and Synacor’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Trade Desk||$308.22 million||11.34||$50.79 million||$1.19||69.74|
|Synacor||$140.03 million||0.55||-$9.77 million||($0.27)||-7.41|
The Trade Desk has higher revenue and earnings than Synacor. Synacor is trading at a lower price-to-earnings ratio than The Trade Desk, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
73.9% of The Trade Desk shares are owned by institutional investors. Comparatively, 28.1% of Synacor shares are owned by institutional investors. 26.9% of The Trade Desk shares are owned by insiders. Comparatively, 18.6% of Synacor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares The Trade Desk and Synacor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Trade Desk||16.14%||24.07%||8.16%|
The Trade Desk beats Synacor on 13 of the 14 factors compared between the two stocks.
About The Trade Desk
The Trade Desk, Inc., a technology company, provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally. The company's platform allows clients to manage integrated advertising campaigns in various advertising channels and formats, including connected TV, mobile, video, audio, display, social, and native on various devices, such as smart TVs, computers, and mobile phones and tablets. It serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was founded in 2009 and is headquartered in Ventura, California.
Synacor, Inc. operates as a technology development, multiplatform services, and revenue partner for video, Internet, and communications providers; and device manufacturers, governments, and enterprises. It enables its customers to provide their consumers engaging, multiscreen experiences with products that require scale, and actionable data and implementation. The company, through its managed portals and advertising solutions, enables its customers to earn revenue by monetizing media among their consumers. It also offers recurring and fee-based revenue solutions, such as Cloud ID Authentication that offers home-based auto-authentication and social login, which enhances the consumer experience by reducing login failures; Email/Collaboration Services that include white-label hosting, security, and migration; and paid content and premium services. The company was formerly known as CKMP, Inc. and changed its name to Synacor, Inc. in July 2001. Synacor, Inc. was founded in 1998 and is headquartered in Buffalo, New York.
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