Trade Desk (NASDAQ:TTD) & Cyxtera Technologies (NASDAQ:CYXT) Financial Analysis

Trade Desk (NASDAQ:TTDGet Rating) and Cyxtera Technologies (NASDAQ:CYXTGet Rating) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Trade Desk and Cyxtera Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trade Desk 0 3 11 0 2.79
Cyxtera Technologies 0 1 7 0 2.88

Trade Desk presently has a consensus target price of $70.79, indicating a potential upside of 42.23%. Cyxtera Technologies has a consensus target price of $9.86, indicating a potential upside of 385.57%. Given Cyxtera Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Cyxtera Technologies is more favorable than Trade Desk.

Valuation & Earnings

This table compares Trade Desk and Cyxtera Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trade Desk $1.20 billion 20.17 $137.76 million ($0.02) -2,488.50
Cyxtera Technologies $703.70 million 0.52 -$257.90 million ($1.21) -1.68

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

Volatility & Risk

Trade Desk has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Cyxtera Technologies has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

67.7% of Trade Desk shares are held by institutional investors. 10.8% of Trade Desk shares are held by insiders. Comparatively, 73.2% of Cyxtera Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Trade Desk and Cyxtera Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trade Desk -0.66% -0.57% -0.27%
Cyxtera Technologies -28.78% -29.61% -5.85%

Summary

Trade Desk beats Cyxtera Technologies on 10 of the 14 factors compared between the two stocks.

About Trade Desk

(Get Rating)

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

About Cyxtera Technologies

(Get Rating)

Cyxtera Technologies, Inc. provides various data center products and services for enterprises, service providers, and government agencies. It offers retail colocation, interconnection, deployment, and support services; and Bare Metal, an on-demand IT infrastructure solution. The company is headquartered in Coral Gables, Florida.

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