Comparing Snap (NYSE:SNAP) & Bumble (NASDAQ:BMBL)

Snap (NYSE:SNAP) and Bumble (NASDAQ:BMBL) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Snap and Bumble, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap	2	23	11	1	2.30
Bumble	2	14	1	0	1.94

Snap presently has a consensus price target of $7.31, indicating a potential upside of 36.91%. Bumble has a consensus price target of $4.04, indicating a potential downside of 32.54%. Given Snap’s stronger consensus rating and higher possible upside, equities analysts clearly believe Snap is more favorable than Bumble.

Profitability

This table compares Snap and Bumble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap	-2.30%	-7.10%	-2.00%
Bumble	-62.87%	39.04%	19.60%

Insider & Institutional Ownership

47.5% of Snap shares are owned by institutional investors. Comparatively, 94.8% of Bumble shares are owned by institutional investors. 22.7% of Snap shares are owned by insiders. Comparatively, 15.3% of Bumble shares are owned by 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.

Earnings and Valuation

This table compares Snap and Bumble”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap	$5.93 billion	1.52	-$460.49 million	($0.09)	-59.31
Bumble	$854.16 million	0.93	-$693.14 million	($4.36)	-1.37

Snap has higher revenue and earnings than Bumble. Snap is trading at a lower price-to-earnings ratio than Bumble, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Snap has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Bumble has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Summary

Snap beats Bumble on 10 of the 15 factors compared between the two stocks.

About Snap

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.

About Bumble

Bumble Inc. operates online dating and social networking platforms, including Bumble, Badoo and Bumble For Friends. Its apps help users meet potential romantic partners, make friends and build social connections, with services available in markets around the world. The Bumble dating app launched in 2014, founded by Whitney Wolfe Herd. It became known for a design in which women initiate conversations in heterosexual matches; the company has since introduced additional ways for users to start conversations.