Head-To-Head Comparison: Pinterest (NYSE:PINS) versus PubMatic (NASDAQ:PUBM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pinterest	6.21%	8.37%	7.11%
PubMatic	5.96%	6.12%	2.58%

Valuation and Earnings

This table compares Pinterest and PubMatic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinterest	$3.06 billion	6.71	-$35.61 million	$0.30	101.07
PubMatic	$267.01 million	2.85	$8.88 million	$0.31	51.45

PubMatic has lower revenue, but higher earnings than Pinterest. PubMatic is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Pinterest and PubMatic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinterest	0	7	20	1	2.79
PubMatic	0	3	5	0	2.63

Pinterest presently has a consensus price target of $41.65, indicating a potential upside of 37.38%. PubMatic has a consensus price target of $21.71, indicating a potential upside of 36.14%. Given Pinterest’s stronger consensus rating and higher probable upside, research analysts plainly believe Pinterest is more favorable than PubMatic.

Risk and Volatility

Pinterest has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, PubMatic has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

88.8% of Pinterest shares are owned by institutional investors. Comparatively, 64.3% of PubMatic shares are owned by institutional investors. 7.1% of Pinterest shares are owned by insiders. Comparatively, 2.9% of PubMatic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Pinterest beats PubMatic on 12 of the 15 factors compared between the two stocks.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

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.