PSQ (NYSE:PSQH – Get Free Report) and BuzzFeed (NASDAQ:BZFD – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.
Volatility & Risk
PSQ has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 4.02, meaning that its stock price is 302% more volatile than the S&P 500.
Earnings and Valuation
This table compares PSQ and BuzzFeed”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PSQ | $18.22 million | 0.36 | -$36.61 million | ($8.09) | -0.24 |
| BuzzFeed | $185.27 million | 0.23 | -$57.72 million | ($1.56) | -0.33 |
PSQ has higher earnings, but lower revenue than BuzzFeed. BuzzFeed is trading at a lower price-to-earnings ratio than PSQ, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PSQ and BuzzFeed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PSQ | -93.52% | -266.43% | -42.35% |
| BuzzFeed | -47.98% | -156.65% | -42.59% |
Institutional and Insider Ownership
17.3% of PSQ shares are held by institutional investors. Comparatively, 37.6% of BuzzFeed shares are held by institutional investors. 12.2% of PSQ shares are held by insiders. Comparatively, 15.6% of BuzzFeed shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for PSQ and BuzzFeed, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PSQ | 1 | 0 | 0 | 0 | 1.00 |
| BuzzFeed | 1 | 1 | 0 | 0 | 1.50 |
BuzzFeed has a consensus target price of $1.00, indicating a potential upside of 93.31%. Given BuzzFeed’s stronger consensus rating and higher possible upside, analysts plainly believe BuzzFeed is more favorable than PSQ.
Summary
BuzzFeed beats PSQ on 9 of the 13 factors compared between the two stocks.
About PSQ
PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, Florida.
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.
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