Magnite, Inc. (MGNI) vs The Trade Desk (TTD)

Magnite, Inc. and The Trade Desk are both Advertising Agencies companies. The Trade Desk is the larger, with a market value of $6.1B against $4.0B — 1.5× the size. The Trade Desk trades at the lower P/E: 15.1× against 21.9×. The Trade Desk grew revenue faster over the last twelve months: 11.6% against 9.14%. Magnite, Inc. has the higher net margin (23.6% vs 13.6%) and the lower return on invested capital (9.66% vs 33.7%). Across the 22 metrics below, The Trade Desk leads on 18 and Magnite, Inc. on 4.

Valuation

Metric MGNI TTD Advertising Agencies median
P/E 21.92 15.07 21.69
P/S 5.21 2.01 0.73
P/B 4.15 2.33 1.02
Price to free cash flow 17.83 6.94 8.36
EV/EBITDA 19.66 6.43 11.66
EV/Sales 5.15 1.53 0.96
Earnings yield 4.56% 6.64% (2.98%)
Free cash flow yield 5.61% 14.40% 0.00%

Profitability

Metric MGNI TTD Advertising Agencies median
Gross margin 66.62% 76.87% 44.67%
Operating margin 18.45% 19.61% 0.00%
Net margin 23.58% 13.61% (2.95%)
Free cash flow margin 29.23% 28.90% 0.00%
Return on equity 20.44% 15.44% 0.00%
Return on assets 5.97% 6.94% 0.00%
Return on invested capital 9.66% 33.65% 0.00%

Growth

Metric MGNI TTD Advertising Agencies median
Revenue growth (TTM) 9.14% 11.61% 2.99%
EPS growth (last fiscal year) 493.75% 15.38% 44.63%
Revenue growth, 5-year CAGR 26.36% 28.21% 5.40%
Net income growth, 5-year CAGR 0.00% 12.84% 0.00%

Health

Metric MGNI TTD Advertising Agencies median
Debt to equity 0.36 0.00 0.04
Current ratio 1.04 1.72 1.72
Net debt to EBITDA (1.33) (1.85) 0.02

Dividend

Metric MGNI TTD Advertising Agencies median
Dividend yield — — 3.66%
Payout ratio — — —

Size

Metric MGNI TTD Advertising Agencies median
Market cap 3.95b 6.06b 60.75m

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