Critical Review: CyberAgent (OTCMKTS:CYGIY) versus Bumble (NASDAQ:BMBL)

Bumble (NASDAQ:BMBL) and CyberAgent (OTCMKTS:CYGIY) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Risk and Volatility

Bumble has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Earnings & Valuation

This table compares Bumble and CyberAgent”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bumble	$965.66 million	0.35	-$693.14 million	($4.23)	-0.60
CyberAgent	$5.86 billion	0.65	$212.18 million	$0.27	13.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bumble	-58.99%	35.88%	17.46%
CyberAgent	4.57%	17.63%	9.06%

Institutional & Insider Ownership

94.8% of Bumble shares are owned by institutional investors. 15.3% of Bumble shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Bumble and CyberAgent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bumble	2	15	1	0	1.94
CyberAgent	0	1	0	0	2.00

Bumble presently has a consensus price target of $3.87, indicating a potential upside of 51.63%. Given Bumble’s higher possible upside, research analysts clearly believe Bumble is more favorable than CyberAgent.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.