Critical Comparison: Trade Desk (NASDAQ:TTD) & InterXion (INXN)

Trade Desk (NASDAQ:TTD) and InterXion (NYSE:INXN) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Valuation & Earnings

This table compares Trade Desk and InterXion’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trade Desk $477.29 million 18.55 $88.14 million $1.92 103.55
InterXion $663.43 million 7.94 $36.75 million $0.66 111.68

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

Insider & Institutional Ownership

67.7% of Trade Desk shares are held by institutional investors. Comparatively, 95.9% of InterXion shares are held by institutional investors. 17.4% of Trade Desk shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Trade Desk and InterXion’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%
InterXion 4.77% 5.60% 1.55%

Volatility and Risk

Trade Desk has a beta of 2.93, indicating that its stock price is 193% more volatile than the S&P 500. Comparatively, InterXion has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trade Desk 0 7 11 0 2.61
InterXion 0 2 5 0 2.71

Trade Desk currently has a consensus target price of $189.06, indicating a potential downside of 4.90%. InterXion has a consensus target price of $80.60, indicating a potential upside of 9.35%. Given InterXion’s stronger consensus rating and higher probable upside, analysts plainly believe InterXion is more favorable than Trade Desk.

Summary

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

Trade Desk Company Profile

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.

InterXion Company Profile

InterXion Holding N.V. provides carrier and cloud-neutral colocation data center services in France, Germany, the Netherlands, the United Kingdom, Austria, Belgium, Denmark, Ireland, Spain, Sweden, and Switzerland. The company enables its customers to connect to a range of telecommunications carriers, cloud platforms, Internet service providers, and other customers. Its data centers acts as content, cloud, and connectivity hubs that facilitate the processing, storage, sharing, and distribution of data between its customers. The company offers colocation services, including space and power to deploy IT infrastructure in its data centers; a range of output voltages and currents; connectivity services that enable its customers to connect their IT infrastructure to exchange traffic and access cloud platforms; and systems monitoring, systems management, engineering support, and data backup and storage services, as well as installs and manages physical connections running from its customers' equipment to the equipment of its telecommunications carriers, Internet service providers, Internet exchange customers, and other customers. It provides its services to telecom operators, Internet service providers, and content delivery networks; content and cloud providers; and enterprises through direct sales forces, as well as through tradeshows, networking events, and industry seminars. As of December 31, 2018, it operated 51 carrier and cloud neutral colocation data centers in 13 metropolitan areas in 11 countries. The company is also involved in real estate management/holding businesses. InterXion Holding N.V. was incorporated in 1998 and is headquartered in Hoofddorp, the Netherlands.

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