WEBTOON Entertainment (NASDAQ:WBTN) & United Internet (OTCMKTS:UDIRF) Financial Analysis

WEBTOON Entertainment (NASDAQ:WBTN) and United Internet (OTCMKTS:UDIRF) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Valuation & Earnings

This table compares WEBTOON Entertainment and United Internet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEBTOON Entertainment	$1.37 billion	0.99	-$345.93 million	($2.63)	-3.81
United Internet	$6.85 billion	0.77	$114.57 million	($0.34)	-80.40

United Internet has higher revenue and earnings than WEBTOON Entertainment. United Internet is trading at a lower price-to-earnings ratio than WEBTOON Entertainment, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for WEBTOON Entertainment and United Internet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEBTOON Entertainment	1	5	2	0	2.12
United Internet	0	0	2	0	3.00

WEBTOON Entertainment currently has a consensus price target of $13.70, suggesting a potential upside of 36.59%. Given WEBTOON Entertainment’s higher possible upside, research analysts clearly believe WEBTOON Entertainment is more favorable than United Internet.

Profitability

This table compares WEBTOON Entertainment and United Internet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEBTOON Entertainment	-25.09%	2.10%	1.60%
United Internet	N/A	N/A	N/A

Risk and Volatility

WEBTOON Entertainment has a beta of 2.56, meaning that its stock price is 156% more volatile than the S&P 500. Comparatively, United Internet has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Summary

WEBTOON Entertainment beats United Internet on 6 of the 11 factors compared between the two stocks.

About WEBTOON Entertainment

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.

About United Internet

United Internet AG, through its subsidiaries, operates as an Internet service provider worldwide. The company operates through Consumer Access, Business Access, Consumer Applications, and Business Applications segments. It offers landline-based broadband and mobile internet products, including home networks, online storage, telephony, and IPTV for private users; and telecommunication products ranging from fiber-optic direct connections to tailored ICT solutions, which include voice, data, and network solutions, as well as infrastructure services to national and international carriers and ISPs. The company also provides applications and services for home users, such as personal information management applications comprising email, to-do lists, appointments, and addresses; and online cloud storage, as well as domains and website solutions. In addition, it provides business applications for freelancers and small to medium enterprises, such as domains, websites, web hosting, servers, cloud solutions, e-shops, group work, online cloud storage, and office software. It offers its access products through the yourfone, smartmobile.de, 1&1, and 1&1 Versatel brands; and applications through GMX, mail.com, WEB.DE, home.pl, Arsys, STRATO, IONOS, Fasthosts, we22, InterNetX, united-domains, and World4You brand names. In addition, the company offers customers professional services in the fields of active domain management; performance-based advertising and sales services under the Sedo brand name; online advertising services under the United Internet Media brand name; and white-label website builder services under the we22 brand, as well as sells IT hardware. The company was incorporated in 1988 and is headquartered in Montabaur, Germany.