PubMatic (NASDAQ:PUBM – Get Free Report) and DouYu International (NASDAQ:DOYU – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.
Insider and Institutional Ownership
64.3% of PubMatic shares are held by institutional investors. Comparatively, 17.9% of DouYu International shares are held by institutional investors. 2.9% of PubMatic shares are held by company insiders. Comparatively, 17.3% of DouYu International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for PubMatic and DouYu International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PubMatic | 0 | 2 | 4 | 0 | 2.67 |
| DouYu International | 1 | 1 | 0 | 0 | 1.50 |
Earnings and Valuation
This table compares PubMatic and DouYu International’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PubMatic | $267.01 million | 3.80 | $8.88 million | $0.21 | 96.72 |
| DouYu International | $778.94 million | 0.45 | $5.00 million | ($0.38) | -28.92 |
PubMatic has higher earnings, but lower revenue than DouYu International. DouYu International is trading at a lower price-to-earnings ratio than PubMatic, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
PubMatic has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Profitability
This table compares PubMatic and DouYu International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PubMatic | 4.42% | 4.21% | 1.95% |
| DouYu International | -1.35% | 0.62% | 0.50% |
Summary
PubMatic beats DouYu International on 12 of the 14 factors compared between the two stocks.
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.
About DouYu International
DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People's Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, and organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People's Republic of China.
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