KnowBe4 (NASDAQ:KNBE – Get Rating) and Trade Desk (NASDAQ:TTD – Get Rating) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.
Institutional & Insider Ownership
73.4% of KnowBe4 shares are owned by institutional investors. Comparatively, 63.4% of Trade Desk shares are owned by institutional investors. 5.0% of KnowBe4 shares are owned by insiders. Comparatively, 10.8% of Trade Desk shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of recent recommendations and price targets for KnowBe4 and Trade Desk, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
KnowBe4 currently has a consensus target price of $31.11, suggesting a potential upside of 65.57%. Trade Desk has a consensus target price of $89.94, suggesting a potential upside of 75.84%. Given Trade Desk’s higher possible upside, analysts clearly believe Trade Desk is more favorable than KnowBe4.
This table compares KnowBe4 and Trade Desk’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares KnowBe4 and Trade Desk’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KnowBe4||$246.30 million||13.33||-$11.85 million||($0.11)||-170.82|
|Trade Desk||$1.20 billion||20.73||$137.76 million||$0.21||243.57|
Trade Desk has higher revenue and earnings than KnowBe4. KnowBe4 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
KnowBe4 has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Trade Desk has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500.
Trade Desk beats KnowBe4 on 12 of the 14 factors compared between the two stocks.
About KnowBe4 (Get Rating)
KnowBe4, Inc. engages in the development, marketing, and sale of its Software-as-a-Service-based security awareness platform. The company provides a platform incorporating security awareness training and simulated phishing with analytics and reporting that helps organizations manage the ongoing problem of social engineering. Its products include Kevin Mitnick Security Awareness Training, a security awareness training product; Compliance Plus, a compliance training product, which enables organizations to offer their employees with relevant, timely, and engaging compliance content across a range of topics from data privacy to diversity, equity, and inclusion; PhishER, its security orchestration, automation, and response product, which enables security professionals to prioritize and automate security workstreams in response to attacks targeted at the human layer; and KnowBe4 Compliance Manager, its governance, risk, and compliance product that enables organizations to analyze security risk and automate the management of compliance and audit functions. The company also offers Security Coach, a solution to address human behavior risks through human detection and response; and PasswordIQ that would be used to mitigate risk related to password hygiene issues, such as weak or breached passwords. It serves its customers directly through inside sales teams for enterprise and small and medium businesses, as well as indirectly through channel partners and managed service providers. The company was formerly known as SEQRIT, LLC and changed its name to KnowBe4, Inc. in January 2016. KnowBe4, Inc. was founded in 2010 and is headquartered in Clearwater, Florida.
About Trade Desk (Get Rating)
Trade Desk, Inc. operates as a technology company in the United States and internationally. The company operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns across various ad formats and channels, including display, video, audio, native, and social on various devices, such as computers, mobile devices, and connected TV. It also provides data and other value-added services. The company serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.
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