Qutoutiao (NASDAQ:QTT – Get Rating) and PubMatic (NASDAQ:PUBM – Get Rating) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares Qutoutiao and PubMatic's gross revenue, earnings per share (EPS) and valuation.

PubMatic has lower revenue, but higher earnings than Qutoutiao.

Institutional and Insider Ownership

1.6% of Qutoutiao shares are owned by institutional investors. Comparatively, 41.6% of PubMatic shares are owned by institutional investors. 47.1% of Qutoutiao shares are owned by insiders. Comparatively, 1.2% of PubMatic shares are owned by 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.

Risk and Volatility

Qutoutiao has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, PubMatic has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Qutoutiao and PubMatic's net margins, return on equity and return on assets.

Analyst Recommendations

This is a summary of recent recommendations for Qutoutiao and PubMatic, as provided by MarketBeat.com.

PubMatic has a consensus price target of $18.38, indicating a potential upside of 30.50%. Given PubMatic's higher possible upside, analysts clearly believe PubMatic is more favorable than Qutoutiao.

Summary

PubMatic beats Qutoutiao on 9 of the 11 factors compared between the two stocks.

About Qutoutiao

(Get Rating)

Qutoutiao Inc. is the No. 2 mobile content aggregator in China in terms of monthly average users (MAUs) and daily average users (DAUs). Their flagship mobile application, launched in June 2016, Qutoutiao, meaning "fun headlines" in Chinese, aggregates articles and short videos and presents customized feeds to users. These feeds are optimized in real time based on each user's profile, behavior and social relationships through their proprietary AI-empowered content recommendation engine. They represent a new generation of technology-driven content platforms and their technology brings relevant information and entertainment to users, stimulates users' desire to read, and ultimately improves the knowledge exchange in society. Their innovative user account system and gamified user loyalty program allows registered users to earn loyalty points by referring new users to register on Qutoutiao, by consuming content or by engaging on Qutoutiao. The gamified loyalty point system not only helps them keep users more engaged and enhance user stickiness, but also enables them to track users' long-term behavior and optimize content recommendation.

About PubMatic

(Get Rating)

PubMatic, Inc. provides a cloud infrastructure platform that enables real-time programmatic advertising transactions for Internet content creators and advertisers worldwide. The company's solutions include Openwrap, a header bidding solution that provides enterprise-grade management and analytics tools; Openwrap OTT, a header bidding management solution for OTT; Openwrap SDK, a header bidding solution for in-app developers; private marketplace solutions; and media buyer consoles. In addition, it offers Real-Time Bidding (RTB) programmatic technologies, which provides various selling options across screens and ad formats; digital advertising inventory quality solutions to detect and filter out invalid traffic and other nefarious activity; Ad quality solutions targeting the reduction of security issues, quality issues, and performance issues; Identity Hub, an identity solution that allows for the use of any advertiser preferred user identifier in a scaled and privacy-compliant fashion; Audience Encore, an audience data platform; and cross-platform video, a sell side platform, which connects trusted video buyers to premium publishers. The company's 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. PubMatic, Inc. was incorporated in 2006 and is based in Redwood City, California.

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