Reviewing United Internet (OTCMKTS:UDIRF) and BuzzFeed (NASDAQ:BZFD)

BuzzFeed (NASDAQ:BZFD) and United Internet (OTCMKTS:UDIRF) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Volatility & Risk

BuzzFeed has a beta of 3.88, meaning that its stock price is 288% more volatile than the S&P 500. Comparatively, United Internet has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Profitability

This table compares BuzzFeed and United Internet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BuzzFeed	-35.83%	-113.86%	-34.00%
United Internet	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and price targets for BuzzFeed and United Internet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BuzzFeed	1	1	0	0	1.50
United Internet	0	0	2	0	3.00

BuzzFeed currently has a consensus price target of $1.00, indicating a potential upside of 10.44%. Given BuzzFeed’s higher possible upside, analysts clearly believe BuzzFeed is more favorable than United Internet.

Earnings & Valuation

This table compares BuzzFeed and United Internet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BuzzFeed	$185.27 million	0.41	-$57.72 million	($1.54)	-0.59
United Internet	$6.85 billion	0.77	$114.57 million	($0.34)	-80.40

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

Insider & Institutional Ownership

37.6% of BuzzFeed shares are held by institutional investors. 15.6% of BuzzFeed shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

United Internet beats BuzzFeed on 9 of the 13 factors compared between the two stocks.

About BuzzFeed

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.

About United Internet

United Internet AG, through its subsidiaries, operates as an Internet service provider worldwide. The company operates through Consumer Access, Business Access, Consumer Applications, and Business Applications segments. It offers landline-based broadband and mobile internet products, including home networks, online storage, telephony, and IPTV for private users; and telecommunication products ranging from fiber-optic direct connections to tailored ICT solutions, which include voice, data, and network solutions, as well as infrastructure services to national and international carriers and ISPs. The company also provides applications and services for home users, such as personal information management applications comprising email, to-do lists, appointments, and addresses; and online cloud storage, as well as domains and website solutions. In addition, it provides business applications for freelancers and small to medium enterprises, such as domains, websites, web hosting, servers, cloud solutions, e-shops, group work, online cloud storage, and office software. It offers its access products through the yourfone, smartmobile.de, 1&1, and 1&1 Versatel brands; and applications through GMX, mail.com, WEB.DE, home.pl, Arsys, STRATO, IONOS, Fasthosts, we22, InterNetX, united-domains, and World4You brand names. In addition, the company offers customers professional services in the fields of active domain management; performance-based advertising and sales services under the Sedo brand name; online advertising services under the United Internet Media brand name; and white-label website builder services under the we22 brand, as well as sells IT hardware. The company was incorporated in 1988 and is headquartered in Montabaur, Germany.