Facebook (NASDAQ: FB) and Match Group (NASDAQ:MTCH) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitabiliy, valuation and risk.

Profitability

This table compares Facebook and Match Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Facebook 38.84% 21.73% 19.68%
Match Group 16.21% 36.94% 8.84%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Facebook and Match Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Facebook 2 2 40 2 2.91
Match Group 0 2 13 0 2.87

Facebook currently has a consensus price target of $180.95, suggesting a potential upside of 7.33%. Match Group has a consensus price target of $20.73, suggesting a potential upside of 9.73%. Given Match Group’s higher possible upside, analysts clearly believe Match Group is more favorable than Facebook.

Valuation & Earnings

This table compares Facebook and Match Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Facebook $33.17 billion 14.76 $18.08 billion $4.39 38.40
Match Group $1.26 billion 3.87 $368.18 million $0.72 26.24

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

Insider and Institutional Ownership

57.6% of Facebook shares are held by institutional investors. Comparatively, 20.6% of Match Group shares are held by institutional investors. 19.1% of Facebook shares are held by company insiders. Comparatively, 18.1% of Match Group shares are held 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.

Volatility & Risk

Facebook has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Match Group has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Summary

Facebook beats Match Group on 13 of the 15 factors compared between the two stocks.

Facebook Company Profile

Facebook, Inc. is focused on building products that enable people to connect and share through mobile devices, personal computers and other surfaces. The Company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus. Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. Instagram enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends. Messenger allows communicating with people and businesses alike across a range of platforms and devices. WhatsApp Messenger is a messaging application that is used by people around the world and is available on a range of mobile platforms. Its Oculus virtual reality technology and content platform offers products that allow people to enter an interactive environment to play games, consume content and connect with others.

Match Group Company Profile

Match Group, Inc., incorporated on February 13, 2009, is a provider of dating products. The Company operates in the Dating segment. The Dating segment consists of all of its dating businesses across the globe. As of March 31, 2017, the Company operated a portfolio of over 45 brands, including Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet and LoveScout24, each designed to manage its users’ likelihood of finding a romantic connection. As of March 31, 2017, the Company offered its dating products in 42 languages across more than 190 countries.

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