Snap (NYSE:SNAP – Get Free Report) and WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Analyst Ratings
This is a summary of recent ratings for Snap and WEBTOON Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Snap | 2 | 22 | 10 | 1 | 2.29 |
| WEBTOON Entertainment | 1 | 5 | 1 | 0 | 2.00 |
Snap presently has a consensus price target of $7.68, suggesting a potential upside of 43.47%. WEBTOON Entertainment has a consensus price target of $10.88, suggesting a potential upside of 22.60%. Given Snap’s stronger consensus rating and higher probable upside, analysts plainly believe Snap is more favorable than WEBTOON Entertainment.
Profitability
This table compares Snap and WEBTOON Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Snap | -4.90% | -14.61% | -4.12% |
| WEBTOON Entertainment | -25.09% | 2.10% | 1.60% |
Earnings & Valuation
This table compares Snap and WEBTOON Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Snap | $5.93 billion | 1.53 | -$460.49 million | ($0.18) | -29.75 |
| WEBTOON Entertainment | $1.38 billion | 0.87 | -$345.93 million | ($2.63) | -3.37 |
WEBTOON Entertainment has lower revenue, but higher earnings than Snap. Snap is trading at a lower price-to-earnings ratio than WEBTOON Entertainment, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
47.5% of Snap shares are held by institutional investors. 22.7% of Snap shares are held by company insiders. Comparatively, 5.6% of WEBTOON Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Snap has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 2.57, meaning that its share price is 157% more volatile than the S&P 500.
Summary
Snap beats WEBTOON Entertainment on 10 of the 15 factors compared between the two stocks.
About Snap
Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.
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.
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