Critical Survey: DoubleVerify (NYSE:DV) and Pony AI (NASDAQ:PONY)

DoubleVerify (NYSE:DV) and Pony AI (NASDAQ:PONY) are both mid-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for DoubleVerify and Pony AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleVerify	0	14	2	0	2.12
Pony AI	1	2	7	0	2.60

DoubleVerify presently has a consensus price target of $13.52, suggesting a potential upside of 0.20%. Pony AI has a consensus price target of $19.57, suggesting a potential upside of 220.38%. Given Pony AI’s stronger consensus rating and higher possible upside, analysts clearly believe Pony AI is more favorable than DoubleVerify.

Institutional and Insider Ownership

97.3% of DoubleVerify shares are held by institutional investors. 4.0% of DoubleVerify shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares DoubleVerify and Pony AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DoubleVerify	7.66%	8.77%	7.34%
Pony AI	-118.47%	-14.86%	-13.97%

Volatility & Risk

DoubleVerify has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Pony AI has a beta of 3.89, suggesting that its stock price is 289% more volatile than the S&P 500.

Valuation & Earnings

This table compares DoubleVerify and Pony AI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleVerify	$748.29 million	2.80	$50.65 million	$0.36	37.49
Pony AI	$90.00 million	29.49	-$133.97 million	($0.36)	-16.97

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

Summary

DoubleVerify beats Pony AI on 9 of the 14 factors compared between the two stocks.

About DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. In addition, the company provides DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.