Contrasting Teads (NASDAQ:TEAD) and Bumble (NASDAQ:BMBL)

Bumble (NASDAQ:BMBL) and Teads (NASDAQ:TEAD) are both small-cap communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings for Bumble and Teads, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bumble	2	14	1	0	1.94
Teads	1	1	1	0	2.00

Bumble presently has a consensus price target of $4.04, indicating a potential downside of 32.54%. Teads has a consensus price target of $0.40, indicating a potential upside of 106.93%. Given Teads’ stronger consensus rating and higher probable upside, analysts clearly believe Teads is more favorable than Bumble.

Insider & Institutional Ownership

94.8% of Bumble shares are held by institutional investors. Comparatively, 60.4% of Teads shares are held by institutional investors. 15.3% of Bumble shares are held by company insiders. Comparatively, 12.0% of Teads shares are held by company 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 and Volatility

Bumble has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Teads has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.

Earnings and Valuation

This table compares Bumble and Teads”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bumble	$965.66 million	0.82	-$693.14 million	($4.23)	-1.42
Teads	$1.30 billion	0.01	-$517.07 million	($8.63)	-0.02

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

Profitability

This table compares Bumble and Teads’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bumble	-62.87%	39.69%	19.92%
Teads	-73.38%	-222.41%	-9.22%

Summary

Bumble beats Teads on 8 of the 12 factors compared between the two stocks.

About Bumble

Bumble Inc. is a technology company that operates online dating and social networking platforms. Its flagship Bumble app is designed to help people make romantic connections, while emphasizing user control and safety in the online dating experience. The company also operates Badoo, a dating platform with an international user base, and offers services focused on friendship and social connections through Bumble-branded products. Its platforms provide features such as profile discovery, matching, messaging, and paid options intended to enhance users’ experiences.

About Teads

Teads is a global advertising technology company that operates an omnichannel digital advertising platform. The company connects advertisers and agencies with publishers and audiences across digital media, helping brands plan, buy, deliver and measure advertising campaigns through a combination of technology, data and creative services. Its offerings include video, display, native, connected television and other digital advertising formats. Teads provides tools for campaign management, audience targeting, automated media buying, creative development and performance measurement.