Head-To-Head Review: Trade Desk (NASDAQ:TTD) & Baidu (NASDAQ:BIDU)

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Trade Desk (NASDAQ:TTD) and Baidu (NASDAQ:BIDU) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Trade Desk and Baidu, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trade Desk 1 6 10 0 2.53
Baidu 0 11 8 0 2.42

Trade Desk presently has a consensus price target of $191.25, suggesting a potential downside of 18.34%. Baidu has a consensus price target of $187.47, suggesting a potential upside of 57.08%. Given Baidu’s higher possible upside, analysts clearly believe Baidu is more favorable than Trade Desk.

Institutional and Insider Ownership

67.4% of Trade Desk shares are held by institutional investors. Comparatively, 59.5% of Baidu shares are held by institutional investors. 17.4% of Trade Desk shares are held by insiders. Comparatively, 16.7% of Baidu shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trade Desk $477.29 million 21.85 $88.14 million $1.92 121.98
Baidu $14.88 billion 2.80 $4.01 billion $7.80 15.30

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

Risk and Volatility

Trade Desk has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500. Comparatively, Baidu has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Trade Desk 17.41% 24.41% 9.12%
Baidu 19.38% 8.58% 5.02%

Summary

Trade Desk beats Baidu on 9 of the 14 factors compared between the two stocks.

About Trade Desk

The Trade Desk, Inc., a technology company, provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally. The company's platform allows clients to manage integrated advertising campaigns in various advertising channels and formats, including display, video, audio, native and social, and on a multitude of devices, such as computers, mobile devices, and connected TV (CTV). It serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was founded in 2009 and is headquartered in Ventura, California.

About Baidu

Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI. The Baidu Core segment offers products for uses, including Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services through its other properties and Union partners; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Haokan, a short video app; and Quanmin, a flash video app for users to create and share short videos. It also provides Baidu Post Bar, a social media platform; Baidu Knows, a question-and-answer community where questions are asked, answered, and organized by users; Baidu Encyclopedia; Baidu Maps that offers locations, and intelligent routing and navigation services; Baidu Input Method Editor (IME), a Chinese-language mobile keyboard; Baidu WenKu; Baijiahao; and DuerOS, a voice assistant platform. In addition, this segment offers online marketing services, which include pay for performance (P4P), an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; Non-P4P services provide display-based marketing services and other online marketing services based on performance criteria other than cost per click; Apollo, an open source autonomous driving platform; and Baidu Cloud primarily provides AI solutions, cloud infrastructure, and other services to enterprises and individuals. The iQIYI segment provides online entertainment service, including original and licensed content; membership services; and online advertising services. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, China.

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