Product Promotion Network

Twitter (TWTR) vs. Facebook (FB) Head to Head Review

Facebook (NASDAQ: FB) and Twitter (NYSE:TWTR) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitabiliy, earnings, risk, analyst recommendations and institutional ownership. Valuation and Earnings

This table compares Facebook and Twitter’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Facebook £33.17 billion 15.06 £18.08 billion £4.39 39.18
Twitter £2.46 billion 4.87 £142.62 million (£0.63) -26.03

Facebook has higher revenue and earnings than Twitter. Twitter 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

57.6% of Facebook shares are owned by institutional investors. Comparatively, 47.0% of Twitter shares are owned by institutional investors.

19.1% of Facebook shares are owned by insiders. Comparatively, 9.2% of Twitter shares are owned 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. Analyst Ratings This is a breakdown of recent ratings and recommmendations for Facebook and Twitter, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Facebook 2 2 40 2 2.91
Twitter 14 20 5 0 1.77

Facebook currently has a consensus price target of £180.95, suggesting a potential upside of 5.22%.

Twitter has a consensus price target of £15.41, suggesting a potential downside of 6.03%. Given Facebook’s stronger consensus rating and higher probable upside, equities analysts plainly believe Facebook is more favorable than Twitter. Profitability

This table compares Facebook and Twitter’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Facebook 38.84% 21.73% 19.68%
Twitter -18.25% -2.91% -1.98%

Volatility & Risk Facebook has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Twitter has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Summary Facebook beats Twitter on 13 of the 14 factors compared between the two stocks. About Facebook

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. About Twitter Twitter logoTwitter, Inc. offers products and services for users, advertisers, developers and data partners.

The Company’s products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Its Twitter is a platform for public self-expression and conversation in real time. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser.

Its Promoted Products enable its advertisers to promote their brands, products and services, amplify their visibility and reach, and extend the conversation around their advertising campaigns. Promoted Accounts appear in the same format and place as accounts suggested by its Who to Follow recommendation engine, or in some cases, in Tweets in a user’s timeline. Promoted Trends appear at the top of the list of trending topics for an entire day in a particular country or on a global basis.

Its MoPub is a mobile-focused advertising exchange.

Twitter Audience Platform is an advertising offering.

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References

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