BuzzFeed (BZFD) and Its Competitors Critical Analysis

BuzzFeed (NASDAQ:BZFDGet Rating) is one of 29 public companies in the “Communication services, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare BuzzFeed to similar companies based on the strength of its risk, earnings, profitability, analyst recommendations, valuation, institutional ownership and dividends.

Earnings and Valuation

This table compares BuzzFeed and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BuzzFeed $397.56 million $24.71 million -1.90
BuzzFeed Competitors $2.35 billion -$998.88 million 15.76

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

Analyst Ratings

This is a breakdown of current recommendations for BuzzFeed and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BuzzFeed 1 2 0 0 1.67
BuzzFeed Competitors 65 220 349 14 2.48

BuzzFeed currently has a consensus price target of $3.00, indicating a potential upside of 129.01%. As a group, “Communication services, not elsewhere classified” companies have a potential upside of 34.01%. Given BuzzFeed’s higher possible upside, equities analysts clearly believe BuzzFeed is more favorable than its rivals.

Volatility and Risk

BuzzFeed has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, BuzzFeed’s rivals have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Profitability

This table compares BuzzFeed and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BuzzFeed -12.30% -13.88% -7.21%
BuzzFeed Competitors -106.23% -101.76% -12.87%

Insider and Institutional Ownership

27.6% of BuzzFeed shares are owned by institutional investors. Comparatively, 38.0% of shares of all “Communication services, not elsewhere classified” companies are owned by institutional investors. 23.7% of BuzzFeed shares are owned by company insiders. Comparatively, 23.1% of shares of all “Communication services, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

BuzzFeed beats its rivals on 7 of the 13 factors compared.

BuzzFeed Company Profile

(Get Rating)

BuzzFeed, Inc., a digital media company, provides breaking news, original reporting, entertainment, and videos across the social web to its global audience. It provides BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a newsroom for young audience; Tasty, a platform for shareable food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content; and Complex Networks that offers culture content of music, food, style, entertainment, and sports. The company also offers As/Is for style, BringMe for travel, Goodful for wellness, and Nifty for DIY. BuzzFeed, Inc. was founded in 2006 and is based in New York, New York.

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