Analyzing PSQ (NYSE:PSQH) and Meta Platforms (NASDAQ:META)

Meta Platforms (NASDAQ:META) and PSQ (NYSE:PSQH) 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, analyst recommendations, valuation, dividends, risk and profitability.

Insider and Institutional Ownership

79.9% of Meta Platforms shares are held by institutional investors. Comparatively, 17.3% of PSQ shares are held by institutional investors. 13.5% of Meta Platforms shares are held by company insiders. Comparatively, 12.2% of PSQ shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Meta Platforms has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, PSQ has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Valuation & Earnings

This table compares Meta Platforms and PSQ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meta Platforms	$200.97 billion	9.37	$60.46 billion	$26.55	27.85
PSQ	$27.03 million	0.62	-$36.61 million	($10.99)	-0.45

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Meta Platforms and PSQ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meta Platforms	0	10	44	3	2.88
PSQ	1	0	1	0	2.00

Meta Platforms presently has a consensus target price of $787.86, indicating a potential upside of 6.55%. PSQ has a consensus target price of $52.50, indicating a potential upside of 950.00%. Given PSQ’s higher possible upside, analysts plainly believe PSQ is more favorable than Meta Platforms.

Profitability

This table compares Meta Platforms and PSQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meta Platforms	29.83%	33.18%	20.07%
PSQ	-132.73%	-284.61%	-52.34%

Summary

Meta Platforms beats PSQ on 14 of the 15 factors compared between the two stocks.

About Meta Platforms

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California

About PSQ

PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, Florida.