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TTD vs. PUBM: Which Ad-Tech Stock Is the Smarter Pick for Now?
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Key Takeaways
TTD and PubMatic are key players in programmatic ads, each targeting opposite sides of the ecosystem.
The Trade Desk gains from CTV growth and deep ties with Disney, Roku and others.
PubMatic is accelerating DSP diversification, expanding buy-side investment, and deepening AI integration.
Both The Trade Desk (TTD - Free Report) and PubMatic (PUBM - Free Report) play pivotal roles in the programmatic advertising ecosystem, but at opposite ends of the spectrum. TTD operates a leading demand-side platform (“DSP”), which helps advertisers focus on data-driven ads. PubMatic, on the other hand, is a sell-side platform that helps publishers across the open internet to control access to their inventory and boost monetization.
Since both firms have massive exposure to the booming Connected TV (“CTV”) and retail media trends, this makes for an intriguing comparison for investors amid a booming digital ad market. According to a Grand View Research report, the global digital advertising market is expected to witness a CAGR of 15.4% from 2025 to 2030.
Let us break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.
The Case for TTD
TTD remains wary of the volatile macro backdrop’s impact on the large global brands. If macro headwinds worsen or persist through the remainder of 2025, revenue growth may face further pressure due to reduced programmatic demand. Regulatory and privacy-related changes like the deprecation of cookies and tightening data-privacy laws like Europe’s GDPR also pose ongoing challenges.
While The Trade Desk remains a leading independent DSP, the competitive environment is becoming more intense. Walled gardens like Google and Amazon dominate this space by controlling their inventory and first-party user data, enabling highly targeted ad campaigns. Even smaller players like Magnite and PubMatic are growing their presence in CTV and retail media while competing for ad dollars. Although CTV continues to be a strong revenue driver, this market is also growing more competitive. Amazon's expanding DSP business poses tough competition for TTD, especially in this space.
Despite these headwinds, The Trade Desk’s expanding CTV footprint is a big plus. CTV is the fastest-growing segment of the digital ad market. On the last earnings call, management highlighted that programmatic CTV continues to deliver the “most effective and highest return on ad spend,” strengthening TTD’s position in the market.
It has also developed strong associations with Disney, NBCU, Roku, Netflix, LG and Walmart, among others. Live sports streaming is emerging as a vital part of the company’s CTV strategy. TTD is also focused on securing long-term, high-value partnerships with major advertisers, agencies and publishers and has nearly 100 joint business plans in the pipeline at the second-quarter end.
The company’s AI-powered Kokai platform further strengthens its competitive moat. More than 70% of clients are now using the company’s Kokai platform, with full client adoption expected to be completed by this year. The integration of Koa AI tools was highlighted by management as a “game changer” for the Kokai platform, as it can deliver significant gains in campaign precision, efficiency and outcomes. Apart from Kokai, retail media, international expansion, UID2 and OpenPath are other positives.
The Case for PUBM
PubMatic is allocating resources to accelerate diversification of its DSP mix, expanding investment on the buy side, boosting CTV and emerging revenue streams and integrating AI across operations and product portfolio.
Like TTD, CTV remains PubMatic’s central pillar of its growth, with revenues from CTV representing nearly 20% of total revenues. The company expanded its partnerships to include 26 of the top 30 global streamers, including a newly added top 5 U.S. streamer, demonstrating its ability to win premium inventory and expand market share. It is also focused on the live sports opportunity. PubMatic’s Live Sports Marketplace allows advertisers to access sports inventory across DirecTV, FanServ, MLB, FuboTV, Spectrum Reach and Roku platforms. On the last earnings call, management noted that buyer activity nearly tripled in the first half of 2025.
PubMatic is also heavily investing in emerging revenue streams (Activate, sell-side data targeting and commerce media) to drive growth and create sticky customer engagement. Revenues from emerging streams more than doubled year over year, representing 8% of total second-quarter revenues. Connect, PUBM’s data and curation business, jumped more than 100%, driven by AI enhancements and a growing sales team.
PubMatic’s Activate platform — enabling direct deals between advertisers and publishers — is quickly becoming a high-growth engine. PUBM noted that buying activity on Activate more than doubled from the first quarter as advertisers seek greater control, transparency and performance outside legacy DSP environments.
PubMatic expects revenues of $61-$66 million in the third quarter compared with $71.8 million in the year-ago quarter. One of PubMatic’s major DSP clients revised the bidding approach, affecting its top line. The company also cited ongoing macroeconomic uncertainty, which is likely to impact ad budgets. Intensifying competition in the digital ad space is an overhang.
Share Performance for TTD & PUBM
Year to date, PUBM and TTD have lost 43.3% and 55.3%, respectively, amid macroeconomic uncertainties.
Image Source: Zacks Investment Research
Valuation for TTD & PUBM
Valuation-wise, TTD is overvalued, as suggested by the Value Score of F, while PUBM has a Value Score of B.
In terms of the price/book ratio, TTD’s shares are trading at 9.52X, higher than PUBM’s 1.56X.
Image Source: Zacks Investment Research
How Do Zacks Estimates Compare for TTD & PUBM?
Analysts have kept their estimates unchanged for PUBM’s bottom line for the current year.
Image Source: Zacks Investment Research
For TTD, there is a marginal downward revision.
Image Source: Zacks Investment Research
TTD or PUBM: Which Is a Better Pick?
PUBM currently carries a Zacks Rank #3 (Hold) while Trade Desk carries a Zacks Rank #4 (Sell). Considering the Zacks Rank, PUBM appears to be a better choice at the moment.
Image: Bigstock
TTD vs. PUBM: Which Ad-Tech Stock Is the Smarter Pick for Now?
Key Takeaways
Both The Trade Desk (TTD - Free Report) and PubMatic (PUBM - Free Report) play pivotal roles in the programmatic advertising ecosystem, but at opposite ends of the spectrum. TTD operates a leading demand-side platform (“DSP”), which helps advertisers focus on data-driven ads. PubMatic, on the other hand, is a sell-side platform that helps publishers across the open internet to control access to their inventory and boost monetization.
Since both firms have massive exposure to the booming Connected TV (“CTV”) and retail media trends, this makes for an intriguing comparison for investors amid a booming digital ad market. According to a Grand View Research report, the global digital advertising market is expected to witness a CAGR of 15.4% from 2025 to 2030.
Let us break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.
The Case for TTD
TTD remains wary of the volatile macro backdrop’s impact on the large global brands. If macro headwinds worsen or persist through the remainder of 2025, revenue growth may face further pressure due to reduced programmatic demand. Regulatory and privacy-related changes like the deprecation of cookies and tightening data-privacy laws like Europe’s GDPR also pose ongoing challenges.
While The Trade Desk remains a leading independent DSP, the competitive environment is becoming more intense. Walled gardens like Google and Amazon dominate this space by controlling their inventory and first-party user data, enabling highly targeted ad campaigns. Even smaller players like Magnite and PubMatic are growing their presence in CTV and retail media while competing for ad dollars. Although CTV continues to be a strong revenue driver, this market is also growing more competitive. Amazon's expanding DSP business poses tough competition for TTD, especially in this space.
Despite these headwinds, The Trade Desk’s expanding CTV footprint is a big plus. CTV is the fastest-growing segment of the digital ad market. On the last earnings call, management highlighted that programmatic CTV continues to deliver the “most effective and highest return on ad spend,” strengthening TTD’s position in the market.
It has also developed strong associations with Disney, NBCU, Roku, Netflix, LG and Walmart, among others. Live sports streaming is emerging as a vital part of the company’s CTV strategy. TTD is also focused on securing long-term, high-value partnerships with major advertisers, agencies and publishers and has nearly 100 joint business plans in the pipeline at the second-quarter end.
The company’s AI-powered Kokai platform further strengthens its competitive moat. More than 70% of clients are now using the company’s Kokai platform, with full client adoption expected to be completed by this year. The integration of Koa AI tools was highlighted by management as a “game changer” for the Kokai platform, as it can deliver significant gains in campaign precision, efficiency and outcomes. Apart from Kokai, retail media, international expansion, UID2 and OpenPath are other positives.
The Case for PUBM
PubMatic is allocating resources to accelerate diversification of its DSP mix, expanding investment on the buy side, boosting CTV and emerging revenue streams and integrating AI across operations and product portfolio.
Like TTD, CTV remains PubMatic’s central pillar of its growth, with revenues from CTV representing nearly 20% of total revenues. The company expanded its partnerships to include 26 of the top 30 global streamers, including a newly added top 5 U.S. streamer, demonstrating its ability to win premium inventory and expand market share. It is also focused on the live sports opportunity. PubMatic’s Live Sports Marketplace allows advertisers to access sports inventory across DirecTV, FanServ, MLB, FuboTV, Spectrum Reach and Roku platforms. On the last earnings call, management noted that buyer activity nearly tripled in the first half of 2025.
PubMatic is also heavily investing in emerging revenue streams (Activate, sell-side data targeting and commerce media) to drive growth and create sticky customer engagement. Revenues from emerging streams more than doubled year over year, representing 8% of total second-quarter revenues. Connect, PUBM’s data and curation business, jumped more than 100%, driven by AI enhancements and a growing sales team.
PubMatic’s Activate platform — enabling direct deals between advertisers and publishers — is quickly becoming a high-growth engine. PUBM noted that buying activity on Activate more than doubled from the first quarter as advertisers seek greater control, transparency and performance outside legacy DSP environments.
PubMatic expects revenues of $61-$66 million in the third quarter compared with $71.8 million in the year-ago quarter. One of PubMatic’s major DSP clients revised the bidding approach, affecting its top line. The company also cited ongoing macroeconomic uncertainty, which is likely to impact ad budgets. Intensifying competition in the digital ad space is an overhang.
Share Performance for TTD & PUBM
Year to date, PUBM and TTD have lost 43.3% and 55.3%, respectively, amid macroeconomic uncertainties.
Image Source: Zacks Investment Research
Valuation for TTD & PUBM
Valuation-wise, TTD is overvalued, as suggested by the Value Score of F, while PUBM has a Value Score of B.
In terms of the price/book ratio, TTD’s shares are trading at 9.52X, higher than PUBM’s 1.56X.
Image Source: Zacks Investment Research
How Do Zacks Estimates Compare for TTD & PUBM?
Analysts have kept their estimates unchanged for PUBM’s bottom line for the current year.
Image Source: Zacks Investment Research
For TTD, there is a marginal downward revision.
Image Source: Zacks Investment Research
TTD or PUBM: Which Is a Better Pick?
PUBM currently carries a Zacks Rank #3 (Hold) while Trade Desk carries a Zacks Rank #4 (Sell). Considering the Zacks Rank, PUBM appears to be a better choice at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.