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APPS vs. PUBM: Which Stock Has an Edge in the AdTech Market?
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Key Takeaways
APPS sees strong AGP traction with rising impressions, revenues and on-device demand.
PubMatic grows via CTV, AI-driven tools and a broader mid-tier DSP mix despite pressures.
APPS shares surged YTD while PUBM declined, with valuations and earnings trends diverging.
Digital Turbine (APPS - Free Report) and PubMatic (PUBM - Free Report) are both part of the digital advertisement market, serving two different verticals. Digital Turbine is deeply integrated as an on-device advertising and app-distribution platform. PubMatic serves as a sell-side platform enabling advertisement publishers to sell their advertising inventory programmatically.
As the AdTech market is expected to grow at a 14.4% rate from 2025 to 2030, per a report by Grand View Research, both companies are going to capitalize on this trend. Let's dive deeper and compare these companies to uncover growth prospects and strategies so investors can make an informed bet.
The Case for Digital Turbine Stock
Digital Turbine’s App Growth Platform (AGP), which connects demand-side platforms (DSPs) with publishers through a programmatic marketplace, is experiencing massive traction due to growth in its distribution of SDK footprint, non-gaming inventory and robust performance in the APAC region.
In the second quarter of fiscal 2026, APPS’ AGP supply volumes experienced a surge in impressions by 30% year over year. APPS’ AGP platform, which operates on cost per mile or cost per install models based on control of ad slots, is now being improved with the implementation of AI and ML to improve targeting and return on ad spend.
APPS is leveraging its Ignite Graph, which is a first-party data engine and DTiQ, an AI/machine learning prediction platform. APPS is improving ad targeting, return on ad spend and user experience. APPS’ AGP segment grew 20% year over year, delivering $44.7 million in revenues.
APPS’ On Device Solutions is also benefiting from strong advertiser demand, which has led to more than 30% year-over-year growth in revenue per device across the U.S. and international markets for the ODS business. Improved pricing, fill rates and premium placements are also a tailwind for the company.
The Case for PubMatic Stock
PubMatic is leveraging CTV, AI-driven automation, and sell-side data intelligence to drive its growth amid the macro pressures and reduced spend from legacy DSP customers. The company is aggressively expanding and diversifying its DSP mix, reducing dependence on legacy buyers and concentrating on mid-tier DSP partners.
Mid-tier DSP partners have become a powerful growth engine, with ad spend from these partners rising more than 25% year over year as performance marketers and agencies adopt PubMatic’s AI-enabled tools. The company has onboarded more than 25 new DSP partners in 2025 and has broadened demand optionality.
Additionally, the company launched Programmatic Guaranteed with a top-three DSP, enabling more efficient execution around CTV and premium video deal Supply Path Optimization (SPO), driving Higher Platform Engagement. SPO represented more than 55% of all platform activity in the third quarter of 2025.
PubMatic has heavily invested in AI, building a three-layered AI system across infrastructure, application, and transactions, creating a defensible moat. It has partnered with NVIDIA and is improving on a five times faster bid response speed, less auction timeout, serving three times more ad requests per server.
APPS vs. PUBM: Price Performance and Valuation
In the past year, APPS shares have skyrocketed 246.2% against the 42.7% decline in PUBM shares.
Image Source: Zacks Investment Research
On the valuation front, APPS trades at a trailing 12-month P/B multiple of 3.75X, higher than PUBM’s 1.76X.
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for APPS & PUBM?
The Zacks Consensus Estimate for Digital Turbine’s fiscal 2026 earnings implies a year-over-year decline of 5.7%. The estimate for fiscal 2026 has been revised downward in the past 60 days.
However, the Zacks Consensus Estimate for PUBM’s 2025 earnings is pegged at 19 cents per share, which has declined 75.6% year over year. The estimate for 2025 has been revised upward in the past 30 days.
APPS benefits from strong on-device demand, expanding data capabilities and rapid revenue growth, while PUBM leverages CTV, AI innovation and a diversified DSP mix to strengthen its long-term moat. However, PUBM faces macro pressures and reduced spend from legacy DSP customers, leading it to change its business model.
Image: Bigstock
APPS vs. PUBM: Which Stock Has an Edge in the AdTech Market?
Key Takeaways
Digital Turbine (APPS - Free Report) and PubMatic (PUBM - Free Report) are both part of the digital advertisement market, serving two different verticals. Digital Turbine is deeply integrated as an on-device advertising and app-distribution platform. PubMatic serves as a sell-side platform enabling advertisement publishers to sell their advertising inventory programmatically.
As the AdTech market is expected to grow at a 14.4% rate from 2025 to 2030, per a report by Grand View Research, both companies are going to capitalize on this trend. Let's dive deeper and compare these companies to uncover growth prospects and strategies so investors can make an informed bet.
The Case for Digital Turbine Stock
Digital Turbine’s App Growth Platform (AGP), which connects demand-side platforms (DSPs) with publishers through a programmatic marketplace, is experiencing massive traction due to growth in its distribution of SDK footprint, non-gaming inventory and robust performance in the APAC region.
In the second quarter of fiscal 2026, APPS’ AGP supply volumes experienced a surge in impressions by 30% year over year. APPS’ AGP platform, which operates on cost per mile or cost per install models based on control of ad slots, is now being improved with the implementation of AI and ML to improve targeting and return on ad spend.
APPS is leveraging its Ignite Graph, which is a first-party data engine and DTiQ, an AI/machine learning prediction platform. APPS is improving ad targeting, return on ad spend and user experience. APPS’ AGP segment grew 20% year over year, delivering $44.7 million in revenues.
APPS’ On Device Solutions is also benefiting from strong advertiser demand, which has led to more than 30% year-over-year growth in revenue per device across the U.S. and international markets for the ODS business. Improved pricing, fill rates and premium placements are also a tailwind for the company.
The Case for PubMatic Stock
PubMatic is leveraging CTV, AI-driven automation, and sell-side data intelligence to drive its growth amid the macro pressures and reduced spend from legacy DSP customers. The company is aggressively expanding and diversifying its DSP mix, reducing dependence on legacy buyers and concentrating on mid-tier DSP partners.
Mid-tier DSP partners have become a powerful growth engine, with ad spend from these partners rising more than 25% year over year as performance marketers and agencies adopt PubMatic’s AI-enabled tools. The company has onboarded more than 25 new DSP partners in 2025 and has broadened demand optionality.
Additionally, the company launched Programmatic Guaranteed with a top-three DSP, enabling more efficient execution around CTV and premium video deal Supply Path Optimization (SPO), driving Higher Platform Engagement. SPO represented more than 55% of all platform activity in the third quarter of 2025.
PubMatic has heavily invested in AI, building a three-layered AI system across infrastructure, application, and transactions, creating a defensible moat. It has partnered with NVIDIA and is improving on a five times faster bid response speed, less auction timeout, serving three times more ad requests per server.
APPS vs. PUBM: Price Performance and Valuation
In the past year, APPS shares have skyrocketed 246.2% against the 42.7% decline in PUBM shares.
Image Source: Zacks Investment Research
On the valuation front, APPS trades at a trailing 12-month P/B multiple of 3.75X, higher than PUBM’s 1.76X.
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for APPS & PUBM?
The Zacks Consensus Estimate for Digital Turbine’s fiscal 2026 earnings implies a year-over-year decline of 5.7%. The estimate for fiscal 2026 has been revised downward in the past 60 days.
Digital Turbine, Inc. Price and Consensus
Digital Turbine, Inc. price-consensus-chart | Digital Turbine, Inc. Quote
However, the Zacks Consensus Estimate for PUBM’s 2025 earnings is pegged at 19 cents per share, which has declined 75.6% year over year. The estimate for 2025 has been revised upward in the past 30 days.
PubMatic, Inc. Price and Consensus
PubMatic, Inc. price-consensus-chart | PubMatic, Inc. Quote
Conclusion: APPS vs. PUBM
APPS benefits from strong on-device demand, expanding data capabilities and rapid revenue growth, while PUBM leverages CTV, AI innovation and a diversified DSP mix to strengthen its long-term moat. However, PUBM faces macro pressures and reduced spend from legacy DSP customers, leading it to change its business model.
Currently, APPS sports a Zacks Rank #1 (Strong Buy), making the stock a stronger pick than PUBM, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.