Chinanet Online (NASDAQ:CNET) and Trade Desk (NASDAQ:TTD) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Institutional & Insider Ownership
Get Chinanet Online alerts:1.0% of Chinanet Online shares are owned by institutional investors. Comparatively, 70.2% of Trade Desk shares are owned by institutional investors. 35.8% of Chinanet Online shares are owned by insiders. Comparatively, 23.5% of Trade Desk shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Chinanet Online and Trade Desk’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chinanet Online | -30.37% | -71.31% | -41.31% |
| Trade Desk | 18.47% | 29.35% | 10.78% |
Earnings & Valuation
This table compares Chinanet Online and Trade Desk’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chinanet Online | $46.63 million | 0.61 | -$10.12 million | N/A | N/A |
| Trade Desk | $477.29 million | 16.88 | $50.79 million | $1.92 | 97.06 |
Trade Desk has higher revenue and earnings than Chinanet Online.
Volatility and Risk
Chinanet Online has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, Trade Desk has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for Chinanet Online and Trade Desk, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chinanet Online | 0 | 0 | 0 | 0 | N/A |
| Trade Desk | 1 | 5 | 12 | 0 | 2.61 |
Trade Desk has a consensus price target of $142.35, suggesting a potential downside of 23.61%. Given Trade Desk’s higher possible upside, analysts clearly believe Trade Desk is more favorable than Chinanet Online.
Summary
Trade Desk beats Chinanet Online on 10 of the 11 factors compared between the two stocks.
About Chinanet Online
ChinaNet Online Holdings, Inc., through its subsidiaries, operates an integrated service platform that provides advertising and marketing services in the People's Republic of China. Its platform comprises CloundX, an omni-channel advertising and marketing system; and a data analysis management system. The company offers Internet advertising, precision marketing, and related data and value added services through its Internet advertising portals, including 28.com; and liansuo.com. It also produces and distributes television shows comprising advertisements. The company serves customers in the food and beverage, women accessories, footwear, apparel and garments, home goods and construction materials, environmental protection equipment, cosmetic and health care, education network, and other industries. ChinaNet Online Holdings, Inc. was founded in 2003 and is based in Beijing, the People's Republic of China.
About Trade Desk
The Trade Desk, Inc., a technology company, provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally. The company's platform allows clients to manage integrated advertising campaigns in various advertising channels and formats, including connected TV, mobile, video, audio, display, social, and native on various devices, such as smart TVs, computers, and mobile phones and tablets. It serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was founded in 2009 and is headquartered in Ventura, California.
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