News (NASDAQ:NWSA – Get Free Report) and PubMatic (NASDAQ:PUBM – Get Free Report) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for News and PubMatic, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| News | 0 | 1 | 5 | 0 | 2.83 |
| PubMatic | 1 | 1 | 10 | 0 | 2.75 |
News presently has a consensus price target of $38.50, suggesting a potential upside of 36.91%. PubMatic has a consensus price target of $19.30, suggesting a potential upside of 10.60%. Given News’ stronger consensus rating and higher possible upside, equities analysts plainly believe News is more favorable than PubMatic.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| News | 6.35% | 7.09% | 4.27% |
| PubMatic | -4.66% | -5.41% | -1.99% |
Institutional and Insider Ownership
67.0% of News shares are owned by institutional investors. Comparatively, 64.3% of PubMatic shares are owned by institutional investors. 13.6% of News shares are owned by insiders. Comparatively, 27.8% of PubMatic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares News and PubMatic”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| News | $9.03 billion | 1.69 | $573.00 million | $1.03 | 27.30 |
| PubMatic | $282.93 million | 2.81 | -$14.46 million | ($0.30) | -58.17 |
News has higher revenue and earnings than PubMatic. PubMatic is trading at a lower price-to-earnings ratio than News, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
News has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, PubMatic has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.
Summary
News beats PubMatic on 10 of the 14 factors compared between the two stocks.
About News
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children’s, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
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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