Critical Analysis: MeetMe (MEET) vs. Twitter (TWTR)
MeetMe (NASDAQ: MEET) and Twitter (NYSE:TWTR) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
This table compares MeetMe and Twitter’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
MeetMe has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Twitter has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
Insider & Institutional Ownership
56.3% of MeetMe shares are owned by institutional investors. Comparatively, 49.2% of Twitter shares are owned by institutional investors. 4.7% of MeetMe shares are owned by company insiders. Comparatively, 10.8% of Twitter shares are owned 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.
This is a summary of recent ratings and target prices for MeetMe and Twitter, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MeetMe presently has a consensus price target of $8.25, indicating a potential upside of 112.63%. Twitter has a consensus price target of $15.32, indicating a potential downside of 12.19%. Given MeetMe’s stronger consensus rating and higher probable upside, equities research analysts plainly believe MeetMe is more favorable than Twitter.
Earnings & Valuation
This table compares MeetMe and Twitter’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MeetMe||$97.80 million||2.85||$26.40 million||$0.24||16.17|
|$2.46 billion||5.20||$142.67 million||($0.63)||-27.70|
Twitter has higher revenue and earnings than MeetMe. Twitter is trading at a lower price-to-earnings ratio than MeetMe, indicating that it is currently the more affordable of the two stocks.
MeetMe beats Twitter on 7 of the 13 factors compared between the two stocks.
The Meet Group, Inc., formerly MeetMe, Inc., offers a portfolio of mobile applications. The Company operates location-based social networks for meeting new people on mobile platforms, including on iPhone, Android, iPad and other tablets, and on the Web that facilitate interactions among users, and helps users to connect and chat with each other. The Company offers online marketing capabilities, which enable marketers to display their advertisements in different formats and in different locations. The Company holds interest in Skout, Inc. (Skout), which serves as a global mobile network for meeting new people. The Company’s social networking products include Chat, Profile and Friends. Its social discovery products facilitate interactions among members. The Company’s social discovery products include Meet, Discuss and Buzz, and Interested. The Company’s products also include Social Theater.
Twitter, Inc. offers products and services for users, advertisers, developers and data partners. The Company’s products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Its Twitter is a platform for public self-expression and conversation in real time. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser. Its Promoted Products enable its advertisers to promote their brands, products and services, amplify their visibility and reach, and extend the conversation around their advertising campaigns. Promoted Accounts appear in the same format and place as accounts suggested by its Who to Follow recommendation engine, or in some cases, in Tweets in a user’s timeline. Promoted Trends appear at the top of the list of trending topics for an entire day in a particular country or on a global basis. Its MoPub is a mobile-focused advertising exchange. Twitter Audience Platform is an advertising offering.
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