Financial Review: PubMatic (NASDAQ:PUBM) versus Oblong (NYSE:OBLG)

Oblong (NYSE:OBLG) and PubMatic (NASDAQ:PUBM) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Oblong and PubMatic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oblong	0	0	0	0	N/A
PubMatic	0	2	4	0	2.67

PubMatic has a consensus price target of $23.00, indicating a potential upside of 13.24%. Given PubMatic’s higher probable upside, analysts clearly believe PubMatic is more favorable than Oblong.

Earnings & Valuation

This table compares Oblong and PubMatic’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oblong	$3.81 million	0.94	-$4.38 million	N/A	N/A
PubMatic	$267.01 million	3.80	$8.88 million	$0.21	96.72

PubMatic has higher revenue and earnings than Oblong.

Profitability

This table compares Oblong and PubMatic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oblong	-126.57%	-71.06%	-57.90%
PubMatic	4.42%	4.21%	1.95%

Risk and Volatility

Oblong has a beta of 3.21, meaning that its stock price is 221% more volatile than the S&P 500. Comparatively, PubMatic has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Insider & Institutional Ownership

2.0% of Oblong shares are held by institutional investors. Comparatively, 64.3% of PubMatic shares are held by institutional investors. 1.0% of Oblong shares are held by company insiders. Comparatively, 2.9% of PubMatic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

PubMatic beats Oblong on 10 of the 11 factors compared between the two stocks.

About Oblong

Oblong, Inc., together with its subsidiaries, provides multi-stream collaboration technologies and managed services for video collaboration and network applications in the United States and internationally. The company operates in two segments, Collaboration Products and Managed Services. Its flagship product is Mezzanine that enables visual collaboration across multi-users, multi-screens, multi-devices, and multi-locations for video telepresence, laptop and application sharing, and whiteboard sharing and slides applications. The company also provides managed videoconferencing services; and remote service management, which offers an overlay to enterprise information technology and channel partner support organizations, as well as support and management services for customer video environments. In addition, it provides network solutions, including Cloud Connect: Video that allows its customers to outsource the management of their video traffic to them and provides the customer's office locations with a secure, dedicated video network connection to the Oblong Cloud for video communications; Cloud Connect: Converge, which offers customized multiprotocol label switching solutions; and Cloud Connect: Cross Connect that allows the customer to leverage existing carrier for the extension of a Layer 2 private line to its data center. The company serves a range of industries comprising aerospace, consulting, executive search, broadcast media, legal, insurance, technology, financial services, education, healthcare, real estate, retail, construction, hospitality, and others, as well as government sector. Oblong, Inc. is based in Denver, Colorado.

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.