Financial Survey: Facebook (FB) versus LinkedIn Corp (LNKD)
Facebook (NASDAQ: FB) and LinkedIn Corp (NYSE:LNKD) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Volatility & Risk
Facebook has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, LinkedIn Corp has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.
This table compares Facebook and LinkedIn Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Facebook and LinkedIn Corp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|$33.17 billion||14.88||$18.08 billion||$4.39||38.71|
Facebook has higher revenue and earnings than LinkedIn Corp. LinkedIn Corp is trading at a lower price-to-earnings ratio than Facebook, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
57.3% of Facebook shares are owned by institutional investors. Comparatively, 64.0% of LinkedIn Corp shares are owned by institutional investors. 19.1% of Facebook shares are owned by insiders. Comparatively, 12.7% of LinkedIn Corp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Facebook and LinkedIn Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Facebook currently has a consensus price target of $183.70, suggesting a potential upside of 8.11%. LinkedIn Corp has a consensus price target of $204.00, suggesting a potential upside of 4.10%. Given Facebook’s stronger consensus rating and higher probable upside, research analysts clearly believe Facebook is more favorable than LinkedIn Corp.
Facebook beats LinkedIn Corp on 10 of the 12 factors compared between the two stocks.
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.
About LinkedIn Corp
LinkedIn Corporation (LinkedIn) is a professional network on the Internet with approximately 400 million members in over 200 countries and territories. The Company provides the majority of its products at no cost to its members. It offers approximately three product lines: Talent Solutions, which includes Hiring, and Learning and Development; Marketing Solutions and Premium Subscriptions. Its products are sold through approximately two channels, an offline field sales organization, which engages with both large and small enterprise customers, as well as an online, self-serve channel, which includes enterprise customers and individual members purchasing subscriptions. Its solutions include Free Solutions and Monetized Solutions. Its Free Solutions include Stay Connected and Informed, and Advance My Career. The Company’s Monetized Solutions include Talent Solutions, which includes Hiring, and Learning and Development, Marketing Solutions and Premium Subscriptions.
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