Analyzing Locafy (NASDAQ:LCFY) and Pinterest (NYSE:PINS)

Locafy (NASDAQ:LCFY) and Pinterest (NYSE:PINS) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Earnings and Valuation

This table compares Locafy and Pinterest”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Locafy	$2.76 million	3.22	-$1.96 million	($1.23)	-5.24
Pinterest	$3.65 billion	7.25	-$35.61 million	$2.69	14.54

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

Profitability

This table compares Locafy and Pinterest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Locafy	-58.48%	-64.65%	-36.58%
Pinterest	51.07%	9.20%	7.79%

Volatility and Risk

Locafy has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Pinterest has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Locafy shares are owned by institutional investors. Comparatively, 88.8% of Pinterest shares are owned by institutional investors. 28.7% of Locafy shares are owned by insiders. Comparatively, 7.1% of Pinterest shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Locafy and Pinterest, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Locafy	0	0	0	0	0.00
Pinterest	0	8	22	0	2.73

Pinterest has a consensus target price of $43.86, suggesting a potential upside of 12.18%. Given Pinterest’s stronger consensus rating and higher probable upside, analysts clearly believe Pinterest is more favorable than Locafy.

Summary

Pinterest beats Locafy on 11 of the 14 factors compared between the two stocks.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.