United Online (NASDAQ: UNTD) and FTD Companies (NASDAQ:FTD) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitabiliy, risk, institutional ownership, earnings, dividends and analyst recommendations.

Valuation and Earnings

This table compares United Online and FTD Companies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United Online N/A N/A N/A N/A N/A
FTD Companies $1.11 billion 0.49 $106.66 million ($2.78) -7.09

FTD Companies has higher revenue and earnings than United Online.

Profitability

This table compares United Online and FTD Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Online -15.65% -9.73% -6.52%
FTD Companies -6.79% 9.32% 4.56%

Analyst Recommendations

This is a summary of current ratings and target prices for United Online and FTD Companies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Online 0 0 0 0 N/A
FTD Companies 0 2 2 0 2.50

FTD Companies has a consensus target price of $22.00, suggesting a potential upside of 11.68%. Given FTD Companies’ higher probable upside, analysts clearly believe FTD Companies is more favorable than United Online.

Volatility & Risk

United Online has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, FTD Companies has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

59.4% of FTD Companies shares are owned by institutional investors. 3.0% of FTD Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

FTD Companies beats United Online on 8 of the 9 factors compared between the two stocks.

United Online Company Profile

United Online, Inc., through its operating subsidiaries, provides consumer services and products over the Internet under various brands, including NetZero, Juno, Trombi and MyPoints. The Company operates in three segments: Communications; Commerce & Loyalty, and Social Media. The Communications segment provides Internet access services and devices, including dial-up, mobile broadband, digital subscriber line (DSL), e-mail, Internet security, Web hosting, and voice services. The Commerce & Loyalty segment includes loyalty marketing service, shopping through online portals, applications and browser extensions. The Social Media segment includes social networking services and products. Its dial-up Internet access services are available in over 12,000 cities across the United States and Canada. It operates over five international Websites that offer social networking services, as a social networking platform to reconnect with friends and acquaintances from high school.

FTD Companies Company Profile

FTD Companies, Inc. (FTD) is a floral and gifting company. The Company operates through four segments: Consumer, Florist, International and Provide Commerce. Through its Consumer segment, FTD is a direct marketer of floral and gift products for consumers, primarily in the United States and Canada. Through its Florist segment, the Company is a provider of products and services to its floral network members, which include traditional retail florists and other non-florist retail locations, primarily in the United States and Canada. Its International segment consists of Interflora, which operates primarily in the United Kingdom and the Republic of Ireland. Through its Provide Commerce segment, FTD is a direct marketer of floral and gift products, including specialty foods, personalized gifts and other gifting products for consumers, primarily in the United States. Its portfolio of brands includes ProFlowers, ProPlants, Flying Flowers, Flowers Direct, Ink Cards, Postagram, and Gifts.com.

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