ZW Data Action Technologies (NASDAQ:CNET – Get Free Report) and PubMatic (NASDAQ:PUBM – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Analyst Ratings
This is a summary of recent ratings and target prices for ZW Data Action Technologies and PubMatic, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZW Data Action Technologies | 0 | 0 | 0 | 0 | 0.00 |
| PubMatic | 0 | 3 | 5 | 0 | 2.63 |
PubMatic has a consensus target price of $21.71, suggesting a potential upside of 38.93%. Given PubMatic’s stronger consensus rating and higher possible upside, analysts clearly believe PubMatic is more favorable than ZW Data Action Technologies.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZW Data Action Technologies | $30.58 million | 0.13 | -$5.97 million | ($2.48) | -0.71 |
| PubMatic | $267.01 million | 2.90 | $8.88 million | $0.31 | 50.42 |
PubMatic has higher revenue and earnings than ZW Data Action Technologies. ZW Data Action Technologies is trading at a lower price-to-earnings ratio than PubMatic, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ZW Data Action Technologies and PubMatic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZW Data Action Technologies | -18.42% | -67.57% | -34.58% |
| PubMatic | 5.96% | 5.98% | 2.60% |
Insider and Institutional Ownership
0.0% of ZW Data Action Technologies shares are held by institutional investors. Comparatively, 64.3% of PubMatic shares are held by institutional investors. 14.2% of ZW Data Action Technologies shares are held by company insiders. Comparatively, 2.9% of PubMatic shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
ZW Data Action Technologies has a beta of 0.63, meaning that its stock price is 37% less 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.
Summary
PubMatic beats ZW Data Action Technologies on 13 of the 14 factors compared between the two stocks.
About ZW Data Action Technologies
ZW Data Action Technologies Inc., through its subsidiaries, offers omni-channel advertising, precision marketing, and data analysis management systems in the People’s Republic of China. The company offers Internet advertising, precision marketing, and related data services to small and medium enterprises through its Internet portals, including 28.com and liansuo.com that provide advertisers with tools to build sales channels in the form of franchisees, sales agents, distributors, and/or resellers. It also develops and operates blockchain technology-based products and services, as well as blockchain-based SaaS services that provides one-stop blockchain-powered enterprise management solutions in forms of NFT generations, data record, share, and storage module subscriptions, etc. In addition, the company offers other e-commerce O2O advertising, and marketing and related value-added technical services. Additionally, it offers online-content production, distribution, promotion, and live streamer training and management services. The company was formerly known as ChinaNet Online Holdings, Inc. and changed its name to ZW Data Action Technologies Inc. in October 2020. Data Action Technologies Inc. was founded in 2003 and is based in Beijing, the People’s Republic of China.
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.
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