Core Insights - Digital Turbine (APPS) and PubMatic (PUBM) operate in the digital advertisement market, focusing on different segments: APPS as an on-device advertising platform and PUBM as a sell-side platform for ad publishers [1][2] Digital Turbine (APPS) - APPS' App Growth Platform (AGP) is gaining traction, connecting demand-side platforms (DSPs) with publishers, driven by an expanding SDK footprint and strong performance in the APAC region [3] - In Q2 of fiscal 2026, APPS' AGP supply volumes saw a 30% year-over-year increase in impressions, with improvements in targeting and return on ad spend through AI and machine learning [4][5] - The On Device Solutions segment is experiencing over 30% year-over-year revenue growth per device, supported by strong advertiser demand and improved pricing and fill rates [6] - APPS' AGP segment generated $44.7 million in revenue, reflecting a 20% year-over-year growth [5] PubMatic (PUBM) - PUBM is focusing on CTV, AI-driven automation, and sell-side data intelligence to mitigate macro pressures and reduced spending from legacy DSP customers [7] - Mid-tier DSP partners are driving growth, with ad spend from these partners increasing over 25% year-over-year, aided by the adoption of PUBM's AI-enabled tools [8] - PUBM launched Programmatic Guaranteed with a top-three DSP, enhancing efficiency in CTV and premium video deals, with Supply Path Optimization (SPO) accounting for over 55% of platform activity in Q3 2025 [9] - The company has invested heavily in AI, achieving a five times faster bid response speed and serving three times more ad requests per server [10] Performance Comparison - Over the past year, APPS shares increased by 246.2%, while PUBM shares declined by 42.7% [11] - APPS is experiencing strong growth in impressions and revenues, while PUBM is adapting through AI innovation and a diversified DSP mix [12] Earnings Estimates - The Zacks Consensus Estimate for APPS' fiscal 2026 earnings indicates a 5.7% year-over-year decline, with recent downward revisions [13] - PUBM's 2025 earnings estimate is 19 cents per share, reflecting a 75.6% year-over-year decline, but has been revised upward recently [13] Conclusion - APPS benefits from strong on-device demand and rapid revenue growth, while PUBM leverages CTV and AI to strengthen its market position [14] - In terms of valuation, APPS has a trailing P/B multiple of 3.75X, compared to PUBM's 1.76X [15] - APPS holds a Zacks Rank 1 (Strong Buy), indicating a stronger investment potential compared to PUBM, which has a Zacks Rank 3 (Hold) [17]

Core Insights - Digital Turbine's App Growth Platform (AGP) operates a programmatic marketplace for ad inventory, charging demand-side platforms (DSPs) and sharing revenues with publishers [1] Group 1: Business Performance - Digital Turbine's AGP business is experiencing strong growth, with a 30% year-over-year increase in supply volumes in fiscal Q2 2026 [2] - The AGP segment generated $44.7 million in revenues, reflecting a 20% year-over-year growth [4] - The company is enhancing its AGP platform by integrating AI and machine learning to improve ad targeting and return on ad spend [3][4] Group 2: Competitive Landscape - Digital Turbine does not face significant competition in its AGP business, as many industry players are customers on the DSP side [5] - However, broader competition exists from companies like AppLovin and Unity Software, which operate in mobile ad-network and app monetization [6][7] Group 3: Valuation and Estimates - Digital Turbine's shares have increased by 245.8% over the past year, significantly outperforming the Zacks Internet – Software industry's growth of 1.1% [8] - The company trades at a forward price-to-book ratio of 3.72X, which is lower than the industry average of 5.82X [10] - The Zacks Consensus Estimate for fiscal 2026 earnings indicates a year-over-year decline of 5.7%, with recent downward revisions [11]