Facebook (FB) vs. The Competition Financial Comparison

Facebook (NASDAQ: FB) is one of 44 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it contrast to its peers? We will compare Facebook to related companies based on the strength of its institutional ownership, valuation, risk, dividends, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

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58.5% of Facebook shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 17.2% of Facebook shares are owned by company insiders. Comparatively, 17.5% of shares of all “Computer programming, data processing, & other computer related” 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.

Volatility and Risk

Facebook has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Facebook’s peers have a beta of 1.41, meaning that their average stock price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Facebook and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Facebook 1 2 39 1 2.93
Facebook Competitors 506 1896 4605 226 2.63

Facebook presently has a consensus target price of $213.17, indicating a potential upside of 35.60%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 11.11%. Given Facebook’s stronger consensus rating and higher probable upside, equities analysts clearly believe Facebook is more favorable than its peers.

Earnings & Valuation

This table compares Facebook and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Facebook $40.65 billion $15.93 billion 25.52
Facebook Competitors $6.96 billion $966.00 million 37.81

Facebook has higher revenue and earnings than its peers. Facebook is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Facebook and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Facebook 39.16% 26.49% 23.73%
Facebook Competitors -15.70% -46.65% -1.75%

Summary

Facebook beats its peers on 9 of the 13 factors compared.

About Facebook

Facebook, 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.

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