Snap (NYSE:SNAP – Get Free Report) and BuzzFeed (NASDAQ:BZFD – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Snap and BuzzFeed, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Snap | 2 | 23 | 11 | 1 | 2.30 |
| BuzzFeed | 1 | 1 | 0 | 0 | 1.50 |
Snap presently has a consensus price target of $7.31, indicating a potential upside of 36.91%. BuzzFeed has a consensus price target of $1.00, indicating a potential upside of 111.64%. Given BuzzFeed’s higher probable upside, analysts plainly believe BuzzFeed is more favorable than Snap.
Insider and Institutional Ownership
47.5% of Snap shares are owned by institutional investors. Comparatively, 37.6% of BuzzFeed shares are owned by institutional investors. 22.7% of Snap shares are owned by company insiders. Comparatively, 15.6% of BuzzFeed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Snap has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 4.02, meaning that its stock price is 302% more volatile than the S&P 500.
Profitability
This table compares Snap and BuzzFeed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Snap | -2.30% | -7.10% | -2.00% |
| BuzzFeed | -47.98% | -160.99% | -44.67% |
Valuation and Earnings
This table compares Snap and BuzzFeed”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Snap | $5.93 billion | 1.52 | -$460.49 million | ($0.09) | -59.31 |
| BuzzFeed | $185.27 million | 0.21 | -$57.72 million | ($1.56) | -0.30 |
BuzzFeed has lower revenue, but higher earnings than Snap. Snap is trading at a lower price-to-earnings ratio than BuzzFeed, indicating that it is currently the more affordable of the two stocks.
Summary
Snap beats BuzzFeed on 11 of the 15 factors compared between the two stocks.
About Snap
Snap Inc. is a technology company best known for Snapchat, a mobile application for visual communication. The company’s products and services help people share photos and videos, message friends, and explore content from creators and publishers. Snapchat features include Stories, Spotlight for short-form video, Snap Map, and augmented reality tools such as interactive Lenses. Snap also provides advertising solutions to businesses and develops camera-related products and services, including its Spectacles smart glasses and Snap AR platform.
About BuzzFeed
BuzzFeed, Inc. (NASDAQ: BZFD) is a digital media company that develops and distributes news, entertainment, lifestyle and cultural content. Its content is published through websites, social media platforms, video services, newsletters and other digital channels, and is supported by advertising, content licensing, affiliate commerce and other commercial partnerships. The company’s portfolio includes the BuzzFeed brand, HuffPost and Tasty. BuzzFeed produces editorial articles, quizzes, videos and social content, while HuffPost focuses on news, opinion, lifestyle and culture.
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