MediaAlpha (NYSE:MAX) & Meta Platforms (NASDAQ:META) Head-To-Head Review

MediaAlpha (NYSE:MAX) and Meta Platforms (NASDAQ:META) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MediaAlpha and Meta Platforms, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MediaAlpha	0	5	3	1	2.56
Meta Platforms	0	9	34	4	2.89

MediaAlpha currently has a consensus price target of $14.29, indicating a potential upside of 11.43%. Meta Platforms has a consensus price target of $785.22, indicating a potential upside of 35.85%. Given Meta Platforms’ stronger consensus rating and higher probable upside, analysts plainly believe Meta Platforms is more favorable than MediaAlpha.

Earnings & Valuation

This table compares MediaAlpha and Meta Platforms”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MediaAlpha	$1.11 billion	0.71	$25.62 million	$1.62	7.91
Meta Platforms	$200.97 billion	7.33	$60.46 billion	$26.55	21.77

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

Profitability

This table compares MediaAlpha and Meta Platforms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MediaAlpha	7.94%	-301.42%	28.23%
Meta Platforms	29.83%	33.18%	20.07%

Institutional & Insider Ownership

64.4% of MediaAlpha shares are owned by institutional investors. Comparatively, 79.9% of Meta Platforms shares are owned by institutional investors. 14.6% of MediaAlpha shares are owned by insiders. Comparatively, 13.5% of Meta Platforms shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

MediaAlpha has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Meta Platforms has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Summary

Meta Platforms beats MediaAlpha on 13 of the 15 factors compared between the two stocks.

About MediaAlpha

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.

About Meta Platforms

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California