Comparing Pony AI (NASDAQ:PONY) and DoubleVerify (NYSE:DV)

Pony AI (NASDAQ:PONY) and DoubleVerify (NYSE:DV) are both mid-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Pony AI and DoubleVerify, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pony AI	1	2	7	0	2.60
DoubleVerify	0	14	2	0	2.12

Pony AI currently has a consensus target price of $19.57, indicating a potential upside of 222.49%. DoubleVerify has a consensus target price of $13.52, indicating a potential upside of 0.27%. Given Pony AI’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Pony AI is more favorable than DoubleVerify.

Insider and Institutional Ownership

97.3% of DoubleVerify shares are owned by institutional investors. 4.0% of DoubleVerify shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Pony AI has a beta of 3.89, indicating that its share price is 289% more volatile than the S&P 500. Comparatively, DoubleVerify has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Pony AI and DoubleVerify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pony AI	-118.47%	-14.86%	-13.97%
DoubleVerify	7.66%	8.77%	7.34%

Valuation and Earnings

This table compares Pony AI and DoubleVerify”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pony AI	$90.00 million	29.30	-$133.97 million	($0.36)	-16.86
DoubleVerify	$748.29 million	2.79	$50.65 million	$0.36	37.46

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

Summary

DoubleVerify beats Pony AI on 9 of the 14 factors compared between the two stocks.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.

About DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. In addition, the company provides DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.