BuzzFeed (BZFD) vs. Its Peers Critical Survey

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 peers? We will compare BuzzFeed to related companies based on the strength of its valuation, profitability, earnings, institutional ownership, risk, analyst recommendations and dividends.

Profitability

This table compares BuzzFeed and its peers’ 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 & 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 insiders. Comparatively, 23.1% of shares of all “Communication services, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

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

Valuation and Earnings

This table compares BuzzFeed and its peers gross revenue, earnings per share (EPS) 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 peers have higher revenue, but lower earnings than BuzzFeed. BuzzFeed 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.

Analyst Recommendations

This is a summary of current ratings and price targets for BuzzFeed and its peers, as provided 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, suggesting 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 plainly believe BuzzFeed is more favorable than its peers.

Summary

BuzzFeed beats its peers 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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