Analyzing TechTarget (NASDAQ:TTGT) and Gambling.com Group (NASDAQ:GAMB)

Gambling.com Group (NASDAQ:GAMB) and TechTarget (NASDAQ:TTGT) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Gambling.com Group and TechTarget, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gambling.com Group	1	3	5	1	2.60
TechTarget	2	0	3	0	2.20

Gambling.com Group currently has a consensus price target of $10.44, suggesting a potential upside of 146.17%. TechTarget has a consensus price target of $11.25, suggesting a potential upside of 133.89%. Given Gambling.com Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Gambling.com Group is more favorable than TechTarget.

Profitability

This table compares Gambling.com Group and TechTarget’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gambling.com Group	1.23%	37.78%	18.71%
TechTarget	-232.59%	-16.76%	-11.15%

Insider & Institutional Ownership

72.3% of Gambling.com Group shares are owned by institutional investors. Comparatively, 93.5% of TechTarget shares are owned by institutional investors. 57.9% of Gambling.com Group shares are owned by insiders. Comparatively, 0.9% of TechTarget shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Gambling.com Group and TechTarget”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gambling.com Group	$127.18 million	1.19	$30.68 million	$0.05	84.80
TechTarget	$284.90 million	1.22	-$116.86 million	($1.73)	-2.78

Gambling.com Group has higher earnings, but lower revenue than TechTarget. TechTarget is trading at a lower price-to-earnings ratio than Gambling.com Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Gambling.com Group has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, TechTarget has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Summary

Gambling.com Group beats TechTarget on 11 of the 15 factors compared between the two stocks.

About Gambling.com Group

Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.

About TechTarget

TechTarget, Inc., together with its subsidiaries, provides marketing and sales services that deliver business impact for business-to-business technology companies in North America and internationally. The company's service enables technology vendors to identify, reach, and influence corporate information technology (IT) decision-makers actively researching specific IT purchases; and customized marketing programs that integrate demand generation, brand advertising techniques, and content curation and creation. It offers business to business services, such as IT Deal Alert, a suite of data, software, and services comprising Priority Engine and Qualified Sales Opportunities to identify and prioritize accounts and individuals actively researching new technology purchases or upgrades; demand solutions provides marketing programs, including white papers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; brand solutions which includes on-network banner advertising and digital sponsorships, off-network banner targeting, and microsites and related formats; custom content creation that delivers market insights and guidance to technology companies and off-the-shelf editorial sponsorship products on topics aligned to customer markets; and BrightTALK platform which allows customers to create, host and promote webinars, virtual events, and video content. In addition, the company operates websites, webinars, and virtual event channels that focus on a specific IT sector, such as storage, security, or networking; and enables registered members to conduct their pre-purchase research by accessing vendor supplied content through its virtual event and webinar channels, and website networks. TechTarget, Inc. was incorporated in 1999 and is headquartered in Newton, Massachusetts.