Analyzing Yelp (YELP) & Its Competitors
Yelp (NYSE: YELP) is one of 50 publicly-traded companies in the “Internet Services” industry, but how does it contrast to its peers? We will compare Yelp to similar companies based on the strength of its profitability, dividends, risk, valuation, earnings, institutional ownership and analyst recommendations.
Volatility & Risk
Yelp has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Yelp’s peers have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Yelp and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Yelp currently has a consensus price target of $39.92, suggesting a potential downside of 13.36%. As a group, “Internet Services” companies have a potential upside of 1.63%. Given Yelp’s peers higher probable upside, analysts clearly believe Yelp has less favorable growth aspects than its peers.
This table compares Yelp and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Yelp and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Yelp||$787.22 million||$43.09 million||307.13|
|Yelp Competitors||$942.22 million||$116.70 million||55.37|
Yelp’s peers have higher revenue and earnings than Yelp. Yelp is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Insider & Institutional Ownership
90.9% of Yelp shares are held by institutional investors. Comparatively, 74.3% of shares of all “Internet Services” companies are held by institutional investors. 10.1% of Yelp shares are held by company insiders. Comparatively, 19.5% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Yelp peers beat Yelp on 9 of the 13 factors compared.
Yelp Inc. (Yelp) connects people with local businesses by bringing ‘word of mouth’ online and providing a platform for businesses and consumers to engage and transact. The Company offers local business review sites. Yelp provides a platform for consumers to share their everyday local business experiences with other consumers by posting reviews, tips, photos and videos, and to engage directly with businesses, through reviews, its Request-A-Quote and Message the Business features, and by completing transactions on the Yelp Platform. Yelp also provides businesses of all sizes with a range of free and paid services that help them engage with consumers. The Yelp Platform allows consumers to transact with local businesses directly on Yelp through Yelp Eat24, the food ordering and delivery business; Yelp Reservations, its online reservations product, and integrations with partners ranging from Shoptiques.com (boutique shopping) to GolfNow (tee time booking) to BloomNation (flower ordering).
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