Head-To-Head Contrast: Magnite (NASDAQ:MGNI) vs. Match Group (NASDAQ:MTCH)

Magnite (NASDAQ:MGNI) and Match Group (NASDAQ:MTCH) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

73.4% of Magnite shares are owned by institutional investors. Comparatively, 94.1% of Match Group shares are owned by institutional investors. 4.3% of Magnite shares are owned by company insiders. Comparatively, 0.7% of Match Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Magnite and Match Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnite	-12.24%	3.23%	0.87%
Match Group	19.03%	-433.59%	14.95%

Risk and Volatility

Magnite has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500. Comparatively, Match Group has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Magnite and Match Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnite	0	0	10	0	3.00
Match Group	0	7	11	0	2.61

Magnite presently has a consensus price target of $15.65, suggesting a potential upside of 10.06%. Match Group has a consensus price target of $42.45, suggesting a potential upside of 31.51%. Given Match Group’s higher probable upside, analysts clearly believe Match Group is more favorable than Magnite.

Valuation and Earnings

This table compares Magnite and Match Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnite	$619.71 million	3.21	-$159.18 million	($0.64)	-22.22
Match Group	$3.36 billion	2.55	$651.54 million	$2.30	14.03

Match Group has higher revenue and earnings than Magnite. Magnite is trading at a lower price-to-earnings ratio than Match Group, indicating that it is currently the more affordable of the two stocks.

Summary

Match Group beats Magnite on 9 of the 14 factors compared between the two stocks.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company's platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.

About Match Group

Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users' likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, Texas.