Comparing TaskUs (NASDAQ:TASK) and Taboola.com (NASDAQ:TBLA)

TaskUs (NASDAQ:TASK) and Taboola.com (NASDAQ:TBLA) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

44.6% of TaskUs shares are owned by institutional investors. Comparatively, 42.9% of Taboola.com shares are owned by institutional investors. 31.9% of TaskUs shares are owned by company insiders. Comparatively, 20.6% of Taboola.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for TaskUs and Taboola.com, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TaskUs	2	4	1	1	2.12
Taboola.com	0	3	5	0	2.62

TaskUs presently has a consensus price target of $11.20, suggesting a potential upside of 102.90%. Taboola.com has a consensus price target of $5.90, suggesting a potential upside of 22.41%. Given TaskUs’ higher probable upside, equities analysts plainly believe TaskUs is more favorable than Taboola.com.

Volatility and Risk

TaskUs has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Earnings & Valuation

This table compares TaskUs and Taboola.com”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TaskUs	$1.18 billion	0.43	$102.28 million	$1.14	4.84
Taboola.com	$1.91 billion	0.61	$42.28 million	$0.38	12.68

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

Profitability

This table compares TaskUs and Taboola.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TaskUs	8.70%	24.93%	12.12%
Taboola.com	5.64%	10.72%	6.37%

Summary

TaskUs beats Taboola.com on 10 of the 15 factors compared between the two stocks.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.

About Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.