Gray Media (NYSE:GTN – Get Free Report) and PubMatic (NASDAQ:PUBM – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.
Risk & Volatility
Gray Media has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, PubMatic has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.
Earnings and Valuation
This table compares Gray Media and PubMatic”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gray Media | $3.15 billion | 0.15 | -$85.00 million | ($0.61) | -7.61 |
| PubMatic | $282.93 million | 2.99 | -$14.46 million | ($0.30) | -62.00 |
PubMatic has lower revenue, but higher earnings than Gray Media. PubMatic is trading at a lower price-to-earnings ratio than Gray Media, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gray Media and PubMatic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gray Media | -0.83% | -1.12% | -0.23% |
| PubMatic | -4.66% | -5.41% | -1.99% |
Analyst Ratings
This is a summary of current ratings for Gray Media and PubMatic, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gray Media | 1 | 1 | 3 | 1 | 2.67 |
| PubMatic | 1 | 1 | 11 | 0 | 2.77 |
Gray Media presently has a consensus target price of $7.88, suggesting a potential upside of 69.54%. PubMatic has a consensus target price of $19.73, suggesting a potential upside of 6.06%. Given Gray Media’s higher possible upside, equities research analysts plainly believe Gray Media is more favorable than PubMatic.
Institutional and Insider Ownership
78.6% of Gray Media shares are owned by institutional investors. Comparatively, 64.3% of PubMatic shares are owned by institutional investors. 8.9% of Gray Media shares are owned by company insiders. Comparatively, 27.8% of PubMatic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Gray Media beats PubMatic on 8 of the 15 factors compared between the two stocks.
About Gray Media
Gray Television, Inc., a television broadcasting company, owns and/or operates television stations and digital assets in the United States. It also broadcasts secondary digital channels affiliated to ABC, CBS, NBC, and FOX, as well as various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, Circle, Telemundo, THE365, and Outlaw; and local news/weather channels in various markets. It owns and operates television stations and digital assets that serve television markets in the United States. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.
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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