iQIYI (NASDAQ:IQ – Get Free Report) and Trade Desk (NASDAQ:TTD – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Institutional & Insider Ownership
52.7% of iQIYI shares are held by institutional investors. Comparatively, 67.8% of Trade Desk shares are held by institutional investors. 57.8% of iQIYI shares are held by insiders. Comparatively, 9.7% of Trade Desk 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.
Earnings and Valuation
This table compares iQIYI 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 | |
| iQIYI | $4.00 billion | 0.43 | $104.68 million | $0.04 | 44.75 |
| Trade Desk | $2.44 billion | 15.16 | $393.08 million | $0.82 | 91.99 |
Trade Desk has lower revenue, but higher earnings than iQIYI. iQIYI is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for iQIYI and Trade Desk, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iQIYI | 1 | 6 | 1 | 0 | 2.00 |
| Trade Desk | 0 | 7 | 26 | 0 | 2.79 |
iQIYI presently has a consensus target price of $2.91, suggesting a potential upside of 62.57%. Trade Desk has a consensus target price of $97.27, suggesting a potential upside of 28.96%. Given iQIYI’s higher probable upside, analysts clearly believe iQIYI is more favorable than Trade Desk.
Profitability
This table compares iQIYI and Trade Desk’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iQIYI | 1.02% | 3.62% | 1.04% |
| Trade Desk | 16.04% | 15.41% | 7.33% |
Volatility and Risk
iQIYI has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500. Comparatively, Trade Desk has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
Summary
Trade Desk beats iQIYI on 11 of the 14 factors compared between the two stocks.
About iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
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.
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