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The Trade Desk vs. Criteo: Which Ad Tech Stock is the Better Buy Now?
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The Trade Desk, Inc. (TTD - Free Report) and Criteo S.A. (CRTO - Free Report) are players in the digital advertising technology space. TTD operates a leading demand-side platform (DSP), which aids advertisers in focusing on data-driven advertising, while Criteo is a global commerce media company that operates as both a DSP and supply-side platform.
The digital advertising market is poised for strong growth, fueled by rising mobile penetration, the proliferation of social media platforms, and the continued expansion of programmatic advertising. The global digital advertising market is projected to grow at a compound annual growth rate (CAGR) of 15.4% from 2025 to 2030, per a report from Grand View Research. The report also highlights that video will remain the dominant format, as brands increasingly recognize the power of visual storytelling.
This positive trend in ad spending bodes well for both The Trade Desk and Criteo. But for investors looking to make a smart move in the digital advertising space, which of these two stocks offers the stronger investment case?
Let’s take a closer look at each company’s strengths and weaknesses to determine which stands out as the better buy.
The Case for TTD
The Trade Desk is gaining from improving demand trends as reflected by strong revenue growth in the first quarter of 2025. TTD reported revenues of $616 million, up 25% year over year and surpassing management’s revenue guidance of at least $575 million. Adjusted EBITDA stood at $208 million (34% margin) compared with $162 million (33% margin) in the year-ago quarter. Video, which includes connected TV or CTV, represented a high 40 percent share of digital spend, while mobile had a mid-30 percent share. Customer retention stood at over 95% for the quarter reported.
TTD reported net cash provided by operating activities of $291.4 million, and free cash flow was $230 million. Adjusted earnings per share came in at 33 cents, up 27% from the year-ago quarter. The company also noted that its Kokai platform was now being used by two-thirds of the clients, much ahead of schedule. The platform is now delivering on lower funnel KPIs, including 24% lower cost per conversion and 20% lower cost per acquisition, added TTD.
Nonetheless, increasing macroeconomic uncertainty and escalating trade tensions do not augur well for TTD, as these could squeeze ad budgets. TTD highlighted the impact of the volatile macro backdrop, particularly on the large global brands. If macro headwinds worsen or persist into the second half of 2025, revenue growth may face further pressure due to reduced programmatic demand. The intensely competitive nature of the digital advertising industry, dominated by industry giants like Alphabet and Amazon, continues to put pressure on TTD’s market positioning. Growing regulatory scrutiny around data privacy and evolving consumer data practices also threaten to disrupt the established audience-targeting methods.
While CTV remains a strong revenue driver, the market is increasingly fragmented and competitive. Heavy reliance on CTV for growth is a concern, as any adverse impact on this segment could weigh heavily on the overall performance. Moreover, TTD derived 88% of its revenues from North America, while only 12% came from international markets. A weak international footprint limits TTD’s total addressable market expansion potential.
Increasing costs are likely to weigh on profitability. In the last reported quarter, total operating costs surged 21.4% year over year to $561.6 million. Expenses soared on account of continued investments in boosting platform capabilities, particularly platform operations. Higher costs can prove a drag on margins, especially if the revenue growth does not keep pace.
The Case for CRTO
Criteo’s AI-driven Performance Media business and leading capabilities in the Retail Media segment bode well. Criteo’s Commerce Media Platform includes demand-side (Commerce Growth and Commerce Max), supply-side (Commerce Grid and Commerce Yield), and data-driven identity solutions, making it a full-stack, vertically integrated platform. This helps the company capture value across the ad tech value chain and reduce overdependence on legacy retargeting. It has been transitioning from its legacy retargeting business toward high-growth areas, such as Retail Media and Commerce Audiences.
Criteo's media spend was $4.3 billion in the last 12 months and $919 million in the first quarter. In the first quarter of 2025, Retail Media on-platform revenues grew 17% year over year, driven by strength in Retail Media onsite. It now has a partnership with 70% of the top 30 U.S. retailers, up from 65% last quarter.
Three hundred new brands were onboarded in the first quarter, taking the total global brands count to over 3,800 for Retail Media. CRTO also launched onsite video solution which offers a full-funnel onsite advertising suite, into general availability. Launches with Office Depot and Costco Canada show that offsite Retail Media is scaling.
Strong focus on strengthening relationships with global agencies and APIs is likely to drive more demand for its solutions. Within Performance Media, the company has rolled out 70 Commerce GO!, a new AI-powered automation and optimization toolset. This particular toolset is designed to launch high-performing campaigns in five clicks, driving faster advertiser onboarding.
The highly competitive digital advertising landscape remains a key concern, with giants like Amazon and Google dominating multiple channels. However, Criteo sets itself apart by offering direct retailer access and a transparent, demand-driven platform built around first-party data. Backed by its extensive retail media network, proprietary Shopper Graph, and AI-powered performance engine, Criteo delivers measurable returns for brands and retailers, a value proposition it aims to strengthen further through ongoing platform innovation and strategic investment.
Share Performance for TTD & CRTO
Year to date, CRTO has lost 33.6% while TTD’s decline stands at 37.1% amid macroeconomic uncertainties and effects of tariffs and inflation surrounding the industry.
Image Source: Zacks Investment Research
Valuation for TTD & CRTO
Valuation-wise, TTD is overvalued, as suggested by the Value Score of F, while CRTO has a Value Score of A, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/earnings ratio, TTD shares are trading at 38.32X, higher than CRTO’s 5.97X.
How Do Zacks Estimates Compare for TTD & CRTO?
Analysts have significantly revised their earnings estimates downward for CRTO’s bottom line for the current quarter.
Image Source: Zacks Investment Research
While for TTD, there is a relatively lower downward revision.
Image Source: Zacks Investment Research
TTD or CRTO: Which is a Smarter Pick?
Currently, CRTO carries a Zacks Rank #2 (Buy), making the stock a stronger pick compared with TTD, which has a Zacks Rank #4 (Sell).
Criteo stands out as the smarter pick due to its stronger valuation, focus on deepening partnerships, and expanding retail media footprint. If investors are seeking a tech stock with long-term growth potential, CRTO is a better pick.
Image: Bigstock
The Trade Desk vs. Criteo: Which Ad Tech Stock is the Better Buy Now?
The Trade Desk, Inc. (TTD - Free Report) and Criteo S.A. (CRTO - Free Report) are players in the digital advertising technology space. TTD operates a leading demand-side platform (DSP), which aids advertisers in focusing on data-driven advertising, while Criteo is a global commerce media company that operates as both a DSP and supply-side platform.
The digital advertising market is poised for strong growth, fueled by rising mobile penetration, the proliferation of social media platforms, and the continued expansion of programmatic advertising. The global digital advertising market is projected to grow at a compound annual growth rate (CAGR) of 15.4% from 2025 to 2030, per a report from Grand View Research. The report also highlights that video will remain the dominant format, as brands increasingly recognize the power of visual storytelling.
This positive trend in ad spending bodes well for both The Trade Desk and Criteo. But for investors looking to make a smart move in the digital advertising space, which of these two stocks offers the stronger investment case?
Let’s take a closer look at each company’s strengths and weaknesses to determine which stands out as the better buy.
The Case for TTD
The Trade Desk is gaining from improving demand trends as reflected by strong revenue growth in the first quarter of 2025. TTD reported revenues of $616 million, up 25% year over year and surpassing management’s revenue guidance of at least $575 million. Adjusted EBITDA stood at $208 million (34% margin) compared with $162 million (33% margin) in the year-ago quarter. Video, which includes connected TV or CTV, represented a high 40 percent share of digital spend, while mobile had a mid-30 percent share. Customer retention stood at over 95% for the quarter reported.
TTD reported net cash provided by operating activities of $291.4 million, and free cash flow was $230 million. Adjusted earnings per share came in at 33 cents, up 27% from the year-ago quarter. The company also noted that its Kokai platform was now being used by two-thirds of the clients, much ahead of schedule. The platform is now delivering on lower funnel KPIs, including 24% lower cost per conversion and 20% lower cost per acquisition, added TTD.
Nonetheless, increasing macroeconomic uncertainty and escalating trade tensions do not augur well for TTD, as these could squeeze ad budgets. TTD highlighted the impact of the volatile macro backdrop, particularly on the large global brands. If macro headwinds worsen or persist into the second half of 2025, revenue growth may face further pressure due to reduced programmatic demand. The intensely competitive nature of the digital advertising industry, dominated by industry giants like Alphabet and Amazon, continues to put pressure on TTD’s market positioning. Growing regulatory scrutiny around data privacy and evolving consumer data practices also threaten to disrupt the established audience-targeting methods.
While CTV remains a strong revenue driver, the market is increasingly fragmented and competitive. Heavy reliance on CTV for growth is a concern, as any adverse impact on this segment could weigh heavily on the overall performance. Moreover, TTD derived 88% of its revenues from North America, while only 12% came from international markets. A weak international footprint limits TTD’s total addressable market expansion potential.
Increasing costs are likely to weigh on profitability. In the last reported quarter, total operating costs surged 21.4% year over year to $561.6 million. Expenses soared on account of continued investments in boosting platform capabilities, particularly platform operations. Higher costs can prove a drag on margins, especially if the revenue growth does not keep pace.
The Case for CRTO
Criteo’s AI-driven Performance Media business and leading capabilities in the Retail Media segment bode well. Criteo’s Commerce Media Platform includes demand-side (Commerce Growth and Commerce Max), supply-side (Commerce Grid and Commerce Yield), and data-driven identity solutions, making it a full-stack, vertically integrated platform. This helps the company capture value across the ad tech value chain and reduce overdependence on legacy retargeting. It has been transitioning from its legacy retargeting business toward high-growth areas, such as Retail Media and Commerce Audiences.
Criteo's media spend was $4.3 billion in the last 12 months and $919 million in the first quarter. In the first quarter of 2025, Retail Media on-platform revenues grew 17% year over year, driven by strength in Retail Media onsite. It now has a partnership with 70% of the top 30 U.S. retailers, up from 65% last quarter.
Three hundred new brands were onboarded in the first quarter, taking the total global brands count to over 3,800 for Retail Media. CRTO also launched onsite video solution which offers a full-funnel onsite advertising suite, into general availability. Launches with Office Depot and Costco Canada show that offsite Retail Media is scaling.
Strong focus on strengthening relationships with global agencies and APIs is likely to drive more demand for its solutions. Within Performance Media, the company has rolled out 70 Commerce GO!, a new AI-powered automation and optimization toolset. This particular toolset is designed to launch high-performing campaigns in five clicks, driving faster advertiser onboarding.
The highly competitive digital advertising landscape remains a key concern, with giants like Amazon and Google dominating multiple channels. However, Criteo sets itself apart by offering direct retailer access and a transparent, demand-driven platform built around first-party data. Backed by its extensive retail media network, proprietary Shopper Graph, and AI-powered performance engine, Criteo delivers measurable returns for brands and retailers, a value proposition it aims to strengthen further through ongoing platform innovation and strategic investment.
Share Performance for TTD & CRTO
Year to date, CRTO has lost 33.6% while TTD’s decline stands at 37.1% amid macroeconomic uncertainties and effects of tariffs and inflation surrounding the industry.
Image Source: Zacks Investment Research
Valuation for TTD & CRTO
Valuation-wise, TTD is overvalued, as suggested by the Value Score of F, while CRTO has a Value Score of A, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/earnings ratio, TTD shares are trading at 38.32X, higher than CRTO’s 5.97X.
How Do Zacks Estimates Compare for TTD & CRTO?
Analysts have significantly revised their earnings estimates downward for CRTO’s bottom line for the current quarter.
Image Source: Zacks Investment Research
While for TTD, there is a relatively lower downward revision.
Image Source: Zacks Investment Research
TTD or CRTO: Which is a Smarter Pick?
Currently, CRTO carries a Zacks Rank #2 (Buy), making the stock a stronger pick compared with TTD, which has a Zacks Rank #4 (Sell).
Criteo stands out as the smarter pick due to its stronger valuation, focus on deepening partnerships, and expanding retail media footprint. If investors are seeking a tech stock with long-term growth potential, CRTO is a better pick.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.