Critical Review: Zeta Global (NYSE:ZETA) and Teads (NASDAQ:TEAD)

Teads (NASDAQ:TEAD) and Zeta Global (NYSE:ZETA) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

Teads has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Zeta Global has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Insider and Institutional Ownership

60.4% of Teads shares are held by institutional investors. Comparatively, 87.8% of Zeta Global shares are held by institutional investors. 12.0% of Teads shares are held by insiders. Comparatively, 10.7% of Zeta Global shares are held by 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.

Earnings & Valuation

This table compares Teads and Zeta Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teads	$1.30 billion	0.09	-$517.07 million	($5.24)	-0.23
Zeta Global	$1.30 billion	4.21	-$31.51 million	($0.11)	-200.46

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

Profitability

This table compares Teads and Zeta Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teads	-39.14%	-17.58%	-3.50%
Zeta Global	-1.62%	2.91%	1.70%

Analyst Recommendations

This is a summary of current recommendations and price targets for Teads and Zeta Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teads	1	3	1	0	2.00
Zeta Global	1	3	10	0	2.64

Teads presently has a consensus price target of $3.13, indicating a potential upside of 156.83%. Zeta Global has a consensus price target of $27.83, indicating a potential upside of 26.22%. Given Teads’ higher probable upside, research analysts plainly believe Teads is more favorable than Zeta Global.

Summary

Zeta Global beats Teads on 10 of the 14 factors compared between the two stocks.

About Teads

Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.

About Zeta Global

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. The company’s Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as agile intelligence suite, which synthesizes Zeta’s data and data generated by its customers to uncover consumer insights that are translated into marketing programs; and CDP, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. Zeta Global Holdings Corp. was incorporated in 2007 and is headquartered in New York, New York.