Analyzing Yellow Pages (OTCMKTS:YLWDF) & Pinterest (NYSE:PINS)

Yellow Pages (OTCMKTS:YLWDF) and Pinterest (NYSE:PINS) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Analyst Recommendations

This is a summary of current ratings for Yellow Pages and Pinterest, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yellow Pages	0	0	0	0	0.00
Pinterest	0	19	17	0	2.47

Pinterest has a consensus target price of $27.90, suggesting a potential upside of 15.99%. Given Pinterest’s stronger consensus rating and higher probable upside, analysts plainly believe Pinterest is more favorable than Yellow Pages.

Earnings and Valuation

This table compares Yellow Pages and Pinterest”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yellow Pages	N/A	N/A	N/A	$3.69	2.59
Pinterest	$4.22 billion	3.19	$416.86 million	$0.34	70.74

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

Insider and Institutional Ownership

58.3% of Yellow Pages shares are held by institutional investors. Comparatively, 88.8% of Pinterest shares are held by institutional investors. 8.1% of Pinterest shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yellow Pages	N/A	N/A	N/A
Pinterest	5.46%	7.49%	5.62%

Summary

Pinterest beats Yellow Pages on 10 of the 11 factors compared between the two stocks.

About Yellow Pages

Yellow Pages Limited, through its subsidiaries, provides digital and print media, and marketing solutions to small and medium-sized enterprises in Canada. The company offers digital and traditional marketing solutions, including online and mobile priority placement on Yellow Pages digital media properties, content syndication, search engine, website fulfillment, social media campaign management, digital display advertising, video production, e-commerce, and print advertising. Its online properties include YP.ca that allows users to discover and transact within their local neighborhoods through merchant profiles, editorial content, reviews, and booking functionalities; Canada411, an online and mobile destination for personal and local business information; 411.ca, a digital directory service to help users find and connect with people and local businesses; and YP Shopwise, an everyday shopping app. The company also operates as a directory publisher for Bell, Telus, Bell Aliant, Bell MTS, and other telephone companies; YP, Canada411, and 411 mobile applications; Yellow Pages print directories, which offers numbers and addresses for local communities; YP eDirectories app, an electronic version of the Yellow Pages print directory; and NetSync, an automated listing information syndication that provides a single-point of entry for businesses to update their business information, opening hours, and contact info, as well as photos and videos. Yellow Pages Limited was founded in 1908 and is headquartered in Montreal, Canada.

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.