Critical Review: Innovid (NYSE:CTV) versus Trend Micro (OTCMKTS:TMICY)

Trend Micro (OTCMKTS:TMICY) and Innovid (NYSE:CTV) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Trend Micro and Innovid, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trend Micro	0	0	0	0	0.00
Innovid	0	4	0	0	2.00

Innovid has a consensus price target of $2.75, suggesting a potential downside of 12.42%. Given Innovid’s stronger consensus rating and higher probable upside, analysts clearly believe Innovid is more favorable than Trend Micro.

Earnings and Valuation

This table compares Trend Micro and Innovid”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trend Micro	$1.80 billion	5.84	$76.20 million	$1.62	46.16
Innovid	$151.56 million	3.08	-$31.91 million	($0.09)	-34.89

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

Institutional & Insider Ownership

0.0% of Trend Micro shares are held by institutional investors. Comparatively, 25.5% of Innovid shares are held by institutional investors. 9.5% of Innovid shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Trend Micro has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Innovid has a beta of 3.25, indicating that its share price is 225% more volatile than the S&P 500.

Profitability

This table compares Trend Micro and Innovid’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trend Micro	12.64%	31.66%	9.11%
Innovid	-9.09%	-7.08%	-5.70%

Summary

Trend Micro beats Innovid on 8 of the 13 factors compared between the two stocks.

About Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.

About Innovid

Innovid Corp. operates an independent software platform that provides ad serving, measurement, and creative services. It offers advertising services for the creation, delivery, and measurement of TV ads across connected TV, mobile TV, and desktop TV environments to advertisers, publishers, and media agencies. The company serves consumer packaged goods, pharmaceutical and healthcare, retail, financial services, and automotive and technology industries; third party agencies; and publishers in the United States, Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. Innovid Corp. was incorporated in 2007 and is headquartered in New York, New York.