The Rubicon Project (NYSE:RUBI) and Switch (NYSE:SWCH) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Insider and Institutional Ownership
63.3% of The Rubicon Project shares are owned by institutional investors. Comparatively, 20.3% of Switch shares are owned by institutional investors. 10.6% of The Rubicon Project shares are owned by insiders. Comparatively, 28.4% of Switch shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for The Rubicon Project and Switch, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Rubicon Project||0||0||3||0||3.00|
The Rubicon Project currently has a consensus price target of $7.00, suggesting a potential upside of 27.50%. Switch has a consensus price target of $13.50, suggesting a potential upside of 7.57%. Given The Rubicon Project’s stronger consensus rating and higher probable upside, research analysts clearly believe The Rubicon Project is more favorable than Switch.
Switch pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. The Rubicon Project does not pay a dividend. Switch pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares The Rubicon Project and Switch’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Rubicon Project||-35.21%||-23.77%||-8.48%|
Volatility & Risk
The Rubicon Project has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Switch has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.
Valuation & Earnings
This table compares The Rubicon Project and Switch’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Rubicon Project||$124.68 million||2.28||-$61.82 million||($0.85)||-6.46|
|Switch||$405.86 million||7.64||$4.05 million||$0.09||139.44|
Switch has higher revenue and earnings than The Rubicon Project. The Rubicon Project is trading at a lower price-to-earnings ratio than Switch, indicating that it is currently the more affordable of the two stocks.
Switch beats The Rubicon Project on 11 of the 16 factors compared between the two stocks.
The Rubicon Project Company Profile
The Rubicon Project, Inc., together with its subsidiaries, provides technology solutions to automate the purchase and sale of digital advertising inventory for buyers and sellers in the United States and internationally. It offers applications and services for digital advertising inventory sellers, including Websites, mobile applications, and other digital media properties, to sell their advertising inventory; applications and services for buyers, such as advertisers, agencies, agency trading desks, and demand side platforms, to buy advertising inventory; and a marketplace over which such transactions are executed. The company was founded in 2007 and is headquartered in Los Angeles, California.
Switch Company Profile
Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services primarily to technology and digital media companies in the United States. It develops and operates data centers in Nevada and Michigan. The company also serves cloud and managed service providers, financial institutions, IT and software providers, government agencies, network and telecommunications providers, and others that conduct critical business on the Internet. Switch, Inc. was founded in 2000 and is headquartered in Las Vegas, Nevada.
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