Trade Desk (NASDAQ:TTD) & KnowBe4 (NASDAQ:KNBE) Head-To-Head Contrast

Trade Desk (NASDAQ:TTDGet Rating) and KnowBe4 (NASDAQ:KNBEGet Rating) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Risk and Volatility

Trade Desk has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500. Comparatively, KnowBe4 has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Profitability

This table compares Trade Desk and KnowBe4’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trade Desk 7.78% 7.08% 3.14%
KnowBe4 -4.74% -0.92% -0.36%

Institutional & Insider Ownership

63.4% of Trade Desk shares are owned by institutional investors. Comparatively, 73.4% of KnowBe4 shares are owned by institutional investors. 10.8% of Trade Desk shares are owned by insiders. Comparatively, 5.0% of KnowBe4 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Trade Desk and KnowBe4’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trade Desk $1.20 billion 20.73 $137.76 million $0.21 243.57
KnowBe4 $246.30 million 13.33 -$11.85 million ($0.11) -170.82

Trade Desk has higher revenue and earnings than KnowBe4. KnowBe4 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 recent recommendations and price targets for Trade Desk and KnowBe4, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trade Desk 0 4 15 0 2.79
KnowBe4 0 1 7 0 2.88

Trade Desk currently has a consensus target price of $89.94, suggesting a potential upside of 75.84%. KnowBe4 has a consensus target price of $31.11, suggesting a potential upside of 65.57%. Given Trade Desk’s higher possible upside, equities research analysts clearly believe Trade Desk is more favorable than KnowBe4.

Summary

Trade Desk beats KnowBe4 on 12 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 KnowBe4 (Get Rating)

KnowBe4, Inc. engages in the development, marketing, and sale of its Software-as-a-Service-based security awareness platform. The company provides a platform incorporating security awareness training and simulated phishing with analytics and reporting that helps organizations manage the ongoing problem of social engineering. Its products include Kevin Mitnick Security Awareness Training, a security awareness training product; Compliance Plus, a compliance training product, which enables organizations to offer their employees with relevant, timely, and engaging compliance content across a range of topics from data privacy to diversity, equity, and inclusion; PhishER, its security orchestration, automation, and response product, which enables security professionals to prioritize and automate security workstreams in response to attacks targeted at the human layer; and KnowBe4 Compliance Manager, its governance, risk, and compliance product that enables organizations to analyze security risk and automate the management of compliance and audit functions. The company also offers Security Coach, a solution to address human behavior risks through human detection and response; and PasswordIQ that would be used to mitigate risk related to password hygiene issues, such as weak or breached passwords. It serves its customers directly through inside sales teams for enterprise and small and medium businesses, as well as indirectly through channel partners and managed service providers. The company was formerly known as SEQRIT, LLC and changed its name to KnowBe4, Inc. in January 2016. KnowBe4, Inc. was founded in 2010 and is headquartered in Clearwater, Florida.

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