Magnite (NASDAQ:MGNI) & DouYu International (NASDAQ:DOYU) Head to Head Analysis

Magnite (NASDAQ:MGNI) and DouYu International (NASDAQ:DOYU) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares Magnite and DouYu International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnite	$668.17 million	2.48	-$159.18 million	$0.14	82.86
DouYu International	$4.27 billion	0.06	$5.00 million	($1.32)	-5.74

DouYu International has higher revenue and earnings than Magnite. DouYu International is trading at a lower price-to-earnings ratio than Magnite, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Magnite and DouYu International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnite	2.62%	4.64%	1.25%
DouYu International	-4.39%	-2.92%	-2.38%

Volatility and Risk

Magnite has a beta of 2.79, meaning that its share price is 179% more volatile than the S&P 500. Comparatively, DouYu International has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Magnite and DouYu International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnite	0	1	12	0	2.92
DouYu International	0	3	0	0	2.00

Magnite currently has a consensus target price of $19.27, suggesting a potential upside of 66.11%. DouYu International has a consensus target price of $12.75, suggesting a potential upside of 68.21%. Given DouYu International’s higher possible upside, analysts clearly believe DouYu International is more favorable than Magnite.

Insider and Institutional Ownership

73.4% of Magnite shares are owned by institutional investors. Comparatively, 17.9% of DouYu International shares are owned by institutional investors. 4.3% of Magnite shares are owned by company insiders. Comparatively, 17.3% of DouYu International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Magnite beats DouYu International on 10 of the 14 factors compared between the two stocks.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.