Big Move for TTD, but Do APP’s Margins and Growth Give It the Edge?
AppLovin (APP) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Trade Desk (TTD), suggesting you may be better off investing in APP
- APP’s quarterly revenue growth was 40.3%, vs. TTD’s 25.4%.
- In addition, its Last 12 Months revenue growth came in at 41.6%, ahead of TTD’s 25.1%.
- APP leads on profitability over both periods – LTM margin of 46.5% and 3-year average of 25.6%.
TTD operates a cloud-based platform enabling buyers to create, manage, and optimize data-driven digital advertising campaigns internationally since 2009. APP provides a software platform for mobile app developers to improve app marketing and monetization, featuring AppDiscovery that connects advertisers and publishers through auction-based solutions.
Valuation & Performance Overview
| TTD | APP | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 95.0 | 55.6 | APP |
| Revenue Growth | |||
| Last Quarter | 25.4% | 40.3% | APP |
| Last 12 Months | 25.1% | 41.6% | APP |
| Last 3 Year Average | 25.8% | 23.2% | TTD |
| Operating Margins | |||
| Last 12 Months | 17.6% | 46.5% | APP |
| Last 3 Year Average | 12.1% | 25.6% | APP |
| Momentum | |||
| Last 3 Year Return | 93.2% | 999.3% | TTD |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: TTD Revenue Comparison | APP Revenue Comparison
See more margin details: TTD Operating Income Comparison | APP Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell APP Stock to see if AppLovin’s edge holds up under the hood or if Trade Desk still has cards to play (see Buy or Sell TTD Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| TTD Return | 208% | 14% | -51% | 61% | 63% | -26% | 232% | ||
| APP Return | – | – | -89% | 278% | 713% | 21% | 286% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 8% | 98% | ||
| Monthly Win Rates [3] | |||||||||
| TTD Win Rate | 83% | 50% | 25% | 67% | 67% | 33% | 54% | ||
| APP Win Rate | – | 75% | 8% | 83% | 83% | 50% | 50% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 50% | 61% | <=== | |
| Max Drawdowns [4] | |||||||||
| TTD Max Drawdown | -44% | -39% | -56% | -6% | -11% | -61% | -36% | ||
| APP Max Drawdown | – | – | -90% | -8% | -4% | -32% | -22% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read APP Dip Buyer Analyses and TTD Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.