HubSpot vs Trade Desk Which Is a Smarter Choice?

HubSpot and Trade Desk are two prominent companies in the marketing and advertising technology sector, each offering unique products and services to help businesses optimize their digital marketing efforts. HubSpot specializes in inbound marketing software, while Trade Desk focuses on programmatic advertising solutions. Both companies have seen significant growth over the years, attracting the interest of investors. In this comparison, we will analyze the financial performance, market position, and future outlook of HubSpot and Trade Desk stocks to determine which may be the better investment opportunity.

HubSpot or Trade Desk?

When comparing HubSpot and Trade Desk, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between HubSpot and Trade Desk.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. HubSpot has a dividend yield of -%, while Trade Desk has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HubSpot reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Trade Desk reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with HubSpot P/E ratio at -2651.10 and Trade Desk's P/E ratio at 211.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HubSpot P/B ratio is 21.12 while Trade Desk's P/B ratio is 24.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HubSpot has seen a 5-year revenue growth of 2.26%, while Trade Desk's is 2.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HubSpot's ROE at -0.91% and Trade Desk's ROE at 13.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $707.58 for HubSpot and $131.04 for Trade Desk. Over the past year, HubSpot's prices ranged from $434.84 to $762.47, with a yearly change of 75.34%. Trade Desk's prices fluctuated between $61.48 and $141.53, with a yearly change of 130.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.