PubMatic (NASDAQ:PUBM – Get Free Report) and OneConnect Financial Technology (NYSE:OCFT – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for PubMatic and OneConnect Financial Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PubMatic | 0 | 4 | 5 | 0 | 2.56 |
| OneConnect Financial Technology | 0 | 0 | 1 | 0 | 3.00 |
PubMatic currently has a consensus target price of $20.63, indicating a potential upside of 40.02%. OneConnect Financial Technology has a consensus target price of $7.00, indicating a potential upside of 152.71%. Given OneConnect Financial Technology’s stronger consensus rating and higher probable upside, analysts clearly believe OneConnect Financial Technology is more favorable than PubMatic.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PubMatic | $267.01 million | 2.64 | $8.88 million | $0.31 | 47.52 |
| OneConnect Financial Technology | $518.92 million | 0.21 | -$51.25 million | $0.11 | 25.18 |
PubMatic has higher earnings, but lower revenue than OneConnect Financial Technology. OneConnect Financial Technology is trading at a lower price-to-earnings ratio than PubMatic, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
64.3% of PubMatic shares are held by institutional investors. Comparatively, 4.1% of OneConnect Financial Technology shares are held by institutional investors. 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 is poised for long-term growth.
Profitability
This table compares PubMatic and OneConnect Financial Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PubMatic | 5.96% | 6.12% | 2.58% |
| OneConnect Financial Technology | 0.95% | -6.05% | -2.71% |
Risk and Volatility
PubMatic has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, OneConnect Financial Technology has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.
Summary
PubMatic beats OneConnect Financial Technology on 11 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 OneConnect Financial Technology
OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It operates in Technology Solutions and Virtual Bank Business segments. The company offers Gamma Platform, which offers a toolbox of separate solution modules that provide technology infrastructure and underlying technologies; marketing management platform, developed from AI Banker App, provides banks relationship managers with technology that supports in managing their acquisition and relationships with retail customers; and wealth management platform that provides banks with tools to enhance the efficiency of their wealth management business. It also provides intelligent product development platform for banks, which allows to shorten product development cycle, enhance speed to market, and facilitate product portfolio management; Regtech, an end-to-end regulatory solution for financial regulatory authorities; asset-liability management solution provides analytics to enhance financial institutions asset liquidity performance; and digital insurance solutions for digitalizing the insurance process, marketing, customer management, and claim processing under intelligent property and casualty insurance and life insurance solution. In addition, the company provides Gamma Voice Solution, an AI customer service for support customer service functions; and Gamma FinCloud, which allows entities with expensive-to-replace legacy systems to directly migrate to the cloud to securely maintain their data. Further, it offers information transmission, information technology advisory, E-commerce security certificate administration, technology promotion and computer application, software and technology, insurance survey and loss adjustment, and asset management and consulting services. The company was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China.
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