Analyzing Snap (NYSE:SNAP) and Opera (NASDAQ:OPRA)

Snap (NYSE:SNAP) and Opera (NASDAQ:OPRA) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Profitability

This table compares Snap and Opera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap	-4.90%	-14.61%	-4.12%
Opera	18.55%	9.14%	8.03%

Valuation & Earnings

This table compares Snap and Opera”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap	$6.35 billion	1.51	-$460.49 million	($0.18)	-31.41
Opera	$682.99 million	2.38	$108.28 million	$1.39	13.17

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

Insider and Institutional Ownership

47.5% of Snap shares are owned by institutional investors. Comparatively, 10.2% of Opera shares are owned by institutional investors. 22.7% of Snap shares are owned by insiders. Comparatively, 84.4% of Opera shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Snap and Opera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap	2	24	8	2	2.28
Opera	0	2	3	0	2.60

Snap currently has a consensus price target of $7.65, suggesting a potential upside of 35.27%. Opera has a consensus price target of $24.75, suggesting a potential upside of 35.25%. Given Snap’s higher probable upside, analysts clearly believe Snap is more favorable than Opera.

Volatility and Risk

Snap has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Opera has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Summary

Opera beats Snap on 10 of the 15 factors compared between the two stocks.

About Snap

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

About Opera

Opera Limited, together with its subsidiaries, provides mobile and PC web browsers and related products and services in Norway and internationally. The company offers mobile browser products, such as Opera Mini, Opera browser for Android and iOS, and Opera GX for PCs and Mobile; Opera Touch; PC browsers, including Opera for Computers and Opera GX; Apex Football; Opera VPN Pro; and Opera News, an AI-powered personalized news discovery and aggregation service. It provides Opera Crypto Browser for PCs and mobile; browser-based cashback rewards programs; owns GameMaker Studio, a 2D gaming development platform; and GXC, a gaming portal. In addition, the company operates Opera Ads, an online advertising platform; and offers Web3 and e-commerce services. Opera Limited was founded in 1995 and is headquartered in Oslo, Norway. Opera Limited is a subsidiary of Kunlun Tech Limited.