Financial Comparison: Bright Mountain Media (OTCMKTS:BMTM) versus Trade Desk (NASDAQ:TTD)

Bright Mountain Media (OTCMKTS:BMTM) and Trade Desk (NASDAQ:TTD) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Profitability

This table compares Bright Mountain Media and Trade Desk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bright Mountain Media	-23.61%	N/A	-35.85%
Trade Desk	15.57%	15.19%	7.17%

Analyst Ratings

This is a summary of current recommendations for Bright Mountain Media and Trade Desk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bright Mountain Media	0	0	0	0	0.00
Trade Desk	3	12	21	0	2.50

Trade Desk has a consensus target price of $84.94, suggesting a potential upside of 64.77%. Given Trade Desk’s stronger consensus rating and higher probable upside, analysts clearly believe Trade Desk is more favorable than Bright Mountain Media.

Insider & Institutional Ownership

67.8% of Trade Desk shares are held by institutional investors. 61.6% of Bright Mountain Media shares are held by company insiders. Comparatively, 10.0% of Trade Desk shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Bright Mountain Media has a beta of 110.68, indicating that its share price is 10,968% more volatile than the S&P 500. Comparatively, Trade Desk has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Valuation and Earnings

This table compares Bright Mountain Media and Trade Desk”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bright Mountain Media	$56.68 million	0.12	-$17.02 million	($0.08)	-0.47
Trade Desk	$2.44 billion	10.31	$393.08 million	$0.83	62.11

Trade Desk has higher revenue and earnings than Bright Mountain Media. Bright Mountain Media is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.

Summary

Trade Desk beats Bright Mountain Media on 12 of the 14 factors compared between the two stocks.

About Bright Mountain Media

Bright Mountain Media, Inc. provides an end-to-end digital media and advertising services platform that connects brands with targeted consumer demographics in the United States and Israel. It focuses on digital publishing comprising websites, including Mom.com, Cafemom.com, LittleThings.com, and MamasLatinas.com; and advertising technology, consumer insights, creative, and media services. The company serves advertisers, advertising agencies and advertising service organizations. The company was formerly known as Bright Mountain Acquisition Corporation and changed its name to Bright Mountain Media, Inc. in December 2015. Bright Mountain Media, Inc. is based in Boca Raton, Florida.

About Trade Desk

The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.