Contrasting Magnite (NASDAQ:MGNI) and Sportradar Group (NASDAQ:SRAD)

Sportradar Group (NASDAQ:SRAD) and Magnite (NASDAQ:MGNI) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Volatility & Risk

Sportradar Group has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500. Comparatively, Magnite has a beta of 2.41, suggesting that its stock price is 141% more volatile than the S&P 500.

Profitability

This table compares Sportradar Group and Magnite’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sportradar Group	2.57%	3.09%	1.30%
Magnite	-0.83%	3.74%	1.01%

Institutional and Insider Ownership

73.4% of Magnite shares are owned by institutional investors. 85.0% of Sportradar Group shares are owned by company insiders. Comparatively, 4.3% of Magnite shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Sportradar Group and Magnite, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportradar Group	0	2	6	0	2.75
Magnite	0	0	10	0	3.00

Sportradar Group presently has a consensus target price of $14.63, indicating a potential upside of 22.59%. Magnite has a consensus target price of $17.25, indicating a potential upside of 44.96%. Given Magnite’s stronger consensus rating and higher probable upside, analysts plainly believe Magnite is more favorable than Sportradar Group.

Valuation & Earnings

This table compares Sportradar Group and Magnite”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportradar Group	$949.77 million	13.96	$37.51 million	$0.09	132.57
Magnite	$649.22 million	2.57	-$159.18 million	($0.64)	-18.60

Sportradar Group has higher revenue and earnings than Magnite. Magnite is trading at a lower price-to-earnings ratio than Sportradar Group, indicating that it is currently the more affordable of the two stocks.

Summary

Sportradar Group beats Magnite on 8 of the 14 factors compared between the two stocks.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company's platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.