The Trade Desk (TTD) vs WPP PLC (WPP)

The Trade Desk and WPP PLC are both Advertising Agencies companies. The Trade Desk and WPP PLC are of similar size ($5.9B and $5.5B). The Trade Desk trades at the lower P/E: 14.8× against 19.3×. WPP PLC grew revenue faster over the last twelve months: 12.5% against 11.6%. The Trade Desk has the higher net margin (13.6% vs 4.18%) and the higher return on invested capital (33.7% vs 0.00%). Across the 19 metrics below, The Trade Desk leads on 16 and WPP PLC on 3.

Valuation

Metric TTD WPP Advertising Agencies median
P/E 14.82 19.32 19.90
P/S 1.97 n/m 0.65
P/B 2.29 n/m 1.58
Price to free cash flow 6.83 n/m 8.32
EV/EBITDA 6.54 0.79 11.81
EV/Sales 1.56 0.11 1.11
Earnings yield 6.75% 5.18% (6.44%)
Free cash flow yield 14.64% 0.00% 0.00%

Profitability

Metric TTD WPP Advertising Agencies median
Gross margin 76.87% 17.21% 44.25%
Operating margin 19.61% 0.00% 0.00%
Net margin 13.61% 4.18% (6.98%)
Free cash flow margin 28.90% 0.00% 0.00%
Return on equity 15.44% 0.00% 0.00%
Return on assets 6.94% 0.00% 0.00%
Return on invested capital 33.65% 0.00% 0.00%

Growth

Metric TTD WPP Advertising Agencies median
Revenue growth (TTM) 11.61% 12.46% 6.06%
EPS growth (last fiscal year) 15.38% (141.77%) —
Revenue growth, 5-year CAGR 28.21% 3.00% 4.30%
Net income growth, 5-year CAGR 12.84% 0.00% 0.00%

Health

Metric TTD WPP Advertising Agencies median
Debt to equity 0.00 1.92 0.04
Current ratio 1.72 0.87 1.45
Net debt to EBITDA (1.85) 2.70 0.01

Dividend

Metric TTD WPP Advertising Agencies median
Dividend yield — 4.94% 5.24%
Payout ratio 0.00 0.81 0.00

Size

Metric TTD WPP Advertising Agencies median
Market cap 5.93b 5.48b 43.42m

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