Match Group (MTCH) vs. The Competition Critical Review

Match Group (NASDAQ:MTCH) is one of 192 publicly-traded companies in the “Interactive Media & Services” industry, but how does it compare to its rivals? We will compare Match Group to similar businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, risk and dividends.

Dividends

Match Group pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Match Group pays out 28.3% of its earnings in the form of a dividend. As a group, “Interactive Media & Services” companies pay a dividend yield of 18.1% and pay out 4.9% of their earnings in the form of a dividend. Match Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

94.1% of Match Group shares are held by institutional investors. Comparatively, 41.1% of shares of all “Interactive Media & Services” companies are held by institutional investors. 0.7% of Match Group shares are held by insiders. Comparatively, 24.0% of shares of all “Interactive Media & Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Match Group and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Match Group	$3.49 billion	$613.45 million	13.64
Match Group Competitors	$13.10 billion	$3.45 billion	20.58

Match Group’s rivals have higher revenue and earnings than Match Group. Match Group 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.

Volatility & Risk

Match Group has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Match Group’s rivals have a beta of 1.84, meaning that their average stock price is 84% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Match Group	20.17%	-324.82%	17.36%
Match Group Competitors	-349.32%	-16.54%	4.26%

Analyst Recommendations

This is a summary of current ratings and price targets for Match Group and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Match Group	0	9	9	0	2.50
Match Group Competitors	1437	6001	11537	441	2.57

Match Group presently has a consensus target price of $45.64, indicating a potential upside of 18.24%. As a group, “Interactive Media & Services” companies have a potential upside of 37.18%. Given Match Group’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Match Group has less favorable growth aspects than its rivals.

Summary

Match Group rivals beat Match Group on 12 of the 15 factors compared.

Match Group Company Profile

Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users' likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, Texas.