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Financial Review: Match Group (MTCH) and Facebook (NASDAQ:FB)

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

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

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

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

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

Valuation & Earnings This table compares Match Group and Facebook’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Match Group £1.30 billion 3.79 £375.68 million £0.72 26.10
Facebook £33.17 billion 15.06 £18.08 billion £4.39 39.18

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. Analyst Ratings This is a breakdown of recent recommendations for Match Group and Facebook, as reported by MarketBeat.com.

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

Match Group currently has a consensus target price of £20.73, indicating a potential upside of 10.31%.

Facebook has a consensus target price of £180.95, indicating a potential upside of 5.22%. Given Match Group’s higher possible upside, equities research analysts plainly believe Match Group is more favorable than Facebook. Institutional & Insider Ownership

20.9% of Match Group shares are held by institutional investors. Comparatively, 57.6% of Facebook shares are held by institutional investors.

18.1% of Match Group shares are held by insiders. Comparatively, 19.1% of Facebook shares are held by insiders.

Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term. Summary Facebook beats Match Group on 13 of the 15 factors compared between the two stocks.

Match Group Company Profile Match Group logoMatch 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.

Facebook Company Profile Facebook logoFacebook, 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.

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References

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