Dada Nexus (NASDAQ:DADA) vs. PubMatic (NASDAQ:PUBM) Head to Head Contrast

Dada Nexus (NASDAQ:DADA) and PubMatic (NASDAQ:PUBM) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Dada Nexus and PubMatic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dada Nexus	1	3	3	0	2.29
PubMatic	0	2	4	0	2.67

Dada Nexus currently has a consensus price target of $4.85, suggesting a potential upside of 123.70%. PubMatic has a consensus price target of $22.20, suggesting a potential downside of 5.25%. Given Dada Nexus’ higher probable upside, research analysts plainly believe Dada Nexus is more favorable than PubMatic.

Profitability

This table compares Dada Nexus and PubMatic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dada Nexus	-22.62%	-14.07%	-11.05%
PubMatic	3.33%	3.29%	1.58%

Risk & Volatility

Dada Nexus has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, PubMatic has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Valuation and Earnings

This table compares Dada Nexus and PubMatic’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dada Nexus	$1.49 billion	0.38	-$275.71 million	($1.31)	-1.66
PubMatic	$267.01 million	4.39	$8.88 million	$0.15	156.21

PubMatic has lower revenue, but higher earnings than Dada Nexus. Dada Nexus is trading at a lower price-to-earnings ratio than PubMatic, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

59.3% of Dada Nexus shares are held by institutional investors. Comparatively, 64.3% of PubMatic shares are held by institutional investors. 8.5% of Dada Nexus shares are held by company insiders. Comparatively, 2.9% of PubMatic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

PubMatic beats Dada Nexus on 11 of the 14 factors compared between the two stocks.

About Dada Nexus

Dada Nexus Limited operates a platform of local on-demand retail and delivery in the People's Republic of China. It operates Dada Now, a local on-demand delivery platform that provides intra-city delivery and last-mile delivery services on an on-demand basis to chain merchants, small- and medium-sized enterprise merchants, and individual senders; and JDDJ, a local on-demand retail platforms for consumers, retailers, and brand owners. The company was incorporated in 2014 and is headquartered in Shanghai, China.

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.