Critical Survey: Innovid (NYSE:CTV) vs. Integral Ad Science (NASDAQ:IAS)

Integral Ad Science (NASDAQ:IAS) and Innovid (NYSE:CTV) are both small-cap communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Insider & Institutional Ownership

95.8% of Integral Ad Science shares are held by institutional investors. Comparatively, 25.5% of Innovid shares are held by institutional investors. 2.0% of Integral Ad Science shares are held by insiders. Comparatively, 9.9% of Innovid shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Integral Ad Science and Innovid’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Integral Ad Science	0.57%	0.31%	0.25%
Innovid	-14.15%	-10.97%	-8.71%

Earnings and Valuation

This table compares Integral Ad Science and Innovid”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integral Ad Science	$498.16 million	3.42	$7.24 million	$0.01	1,062.00
Innovid	$149.54 million	1.81	-$31.91 million	($0.21)	-8.90

Integral Ad Science has higher revenue and earnings than Innovid. Innovid is trading at a lower price-to-earnings ratio than Integral Ad Science, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Integral Ad Science and Innovid, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integral Ad Science	0	3	8	0	2.73
Innovid	0	1	2	0	2.67

Integral Ad Science currently has a consensus price target of $16.40, indicating a potential upside of 54.43%. Innovid has a consensus price target of $2.83, indicating a potential upside of 51.52%. Given Integral Ad Science’s stronger consensus rating and higher probable upside, research analysts plainly believe Integral Ad Science is more favorable than Innovid.

Risk & Volatility

Integral Ad Science has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Innovid has a beta of 3.11, suggesting that its share price is 211% more volatile than the S&P 500.

Summary

Integral Ad Science beats Innovid on 12 of the 14 factors compared between the two stocks.

About Integral Ad Science

Integral Ad Science Holding Corp. operates as a digital advertising verification company in the United States, the United Kingdom, France, Ireland, Germany, Italy, Singapore, Australia, Japan, India, and the Nordics. The company provides IAS Signal, a cloud-based technology platform that offers return on ad spend needs; and deliver independent measurement and verification of digital advertising across devices, channels, and formats, including desktop, mobile, connected TV, social, display, and video. Its digital media quality solutions offer ad fraud detection and prevention, viewability, brand safety and suitability, contextual targeting, inventory yield management, and reporting. In addition, the company offers Quality Impressions, a metric designed to verify that digital ads are served to a real person rather than a bot, viewable on-screen, and presented in a brand-safe and suitable environment in the correct geography; Context Control solution that delivers contextual targeting and brand suitability capabilities; pre-bid programmatic and post-bid verification solutions for advertisers; and optimization and verification solutions for publishers. It serves advertisers and agencies, publishers, and supply side platforms. The company was founded in 2009 and is headquartered in New York, New York.

About Innovid

Innovid Corp. operates an independent software platform that provides ad serving, measurement, and creative services. It offers advertising services for the creation, delivery, and measurement of TV ads across connected TV, mobile TV, and desktop TV environments to advertisers, publishers, and media agencies. The company serves consumer packaged goods, pharmaceutical and healthcare, retail, financial services, and automotive and technology industries; third party agencies; and publishers in the United States, Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. Innovid Corp. was incorporated in 2007 and is headquartered in New York, New York.