Comparing PubMatic (NASDAQ:PUBM) and OneStream (NASDAQ:OS)
by Sarita Garza · The Markets DailyOneStream (NASDAQ:OS – Get Free Report) and PubMatic (NASDAQ:PUBM – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Earnings & Valuation
This table compares OneStream and PubMatic”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OneStream | $570.68 million | 10.04 | -$216.20 million | ($0.48) | -48.98 |
| PubMatic | $288.38 million | 1.05 | $12.50 million | ($0.19) | -34.42 |
PubMatic has lower revenue, but higher earnings than OneStream. OneStream is trading at a lower price-to-earnings ratio than PubMatic, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares OneStream and PubMatic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OneStream | -14.50% | 9.65% | 5.74% |
| PubMatic | -2.51% | -2.78% | -1.05% |
Risk and Volatility
OneStream has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, PubMatic has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.
Institutional and Insider Ownership
64.3% of PubMatic shares are held by institutional investors. 12.8% of OneStream shares are held by insiders. Comparatively, 26.4% of PubMatic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for OneStream and PubMatic, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OneStream | 3 | 16 | 4 | 1 | 2.13 |
| PubMatic | 1 | 3 | 5 | 0 | 2.44 |
OneStream presently has a consensus target price of $25.38, suggesting a potential upside of 7.96%. PubMatic has a consensus target price of $12.44, suggesting a potential upside of 90.18%. Given PubMatic’s stronger consensus rating and higher probable upside, analysts plainly believe PubMatic is more favorable than OneStream.
Summary
PubMatic beats OneStream on 9 of the 15 factors compared between the two stocks.
About OneStream
OneStream, Inc. is a holding company, which engages in the development of an artificial intelligence (AI) based enterprise finance platform. The firm offers Digital Finance Cloud, an AI-enabled and extensible software platform that unifies core financial functions and operational data and processes. The company was founded by Craig Colby and Thomas Shea on October 15, 2021 and is headquartered in Birmingham, MI.
About PubMatic
PubMatic, Inc., a technology company, engages in the provision of a cloud infrastructure platform that enables real-time programmatic advertising transactions for digital content creators, advertisers, agencies, agency trading desks, and demand side platforms worldwide. Its PubMatic SSP, a sell-side platform, used for the purchase and sale of digital advertising inventory for publishers and buyers. The company also provides solutions, including OpenWrap, a header bidding solution; Openwrap OTT, a prebid-powered unified bidding solution; Openwrap SDK, an enterprise-grade management tools and analytics; Connect, a solution that provides additional data and insights to publishers and buyers; Activate, which allows buyers to execute direct deals on its platform across publisher inventory; Convert, a commerce media solution; and Identity Hub, an ID management tool for publishers that leverages specialized technology?infrastructure?to simplify the complex alternative identifier marketplace. Its platform supports an array of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top (OTT), connected television, and media. The company was incorporated in 2006 and is based in Redwood City, California.