Head to Head Survey: Snap (SNAP) vs. Its Competitors

Snap (NYSE:SNAP) is one of 189 publicly-traded companies in the “Interactive Media & Services” industry, but how does it contrast to its peers? We will compare Snap to similar companies based on the strength of its profitability, analyst recommendations, valuation, institutional ownership, earnings, risk and dividends.

Volatility & Risk

Snap has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Snap’s peers have a beta of 1.89, meaning that their average stock price is 89% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Snap and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap	2	23	11	1	2.30
Snap Competitors	1412	6000	11515	443	2.57

Snap presently has a consensus price target of $7.31, suggesting a potential upside of 36.91%. As a group, “Interactive Media & Services” companies have a potential upside of 31.07%. Given Snap’s higher probable upside, equities research analysts clearly believe Snap is more favorable than its peers.

Earnings & Valuation

This table compares Snap and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Snap	$5.93 billion	-$460.49 million	-59.31
Snap Competitors	$13.39 billion	$3.56 billion	8.37

Snap’s peers have higher revenue and earnings than Snap. Snap is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

47.5% of Snap shares are held by institutional investors. Comparatively, 42.2% of shares of all “Interactive Media & Services” companies are held by institutional investors. 22.7% of Snap shares are held by insiders. Comparatively, 24.0% of shares of all “Interactive Media & Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Snap and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap	-2.30%	-7.10%	-2.00%
Snap Competitors	-159.28%	-15.73%	4.06%

Summary

Snap peers beat Snap on 8 of the 13 factors compared.

Snap Company Profile

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.