Meet Group (NASDAQ: MEET) and LinkedIn Corp (NYSE:LNKD) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Institutional and Insider Ownership

56.3% of Meet Group shares are owned by institutional investors. Comparatively, 64.0% of LinkedIn Corp shares are owned by institutional investors. 4.7% of Meet Group shares are owned by company insiders. Comparatively, 12.7% of LinkedIn Corp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Meet Group and LinkedIn Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Meet Group $97.80 million 2.65 $26.40 million $0.24 15.04
LinkedIn Corp N/A N/A N/A ($1.24) -158.03

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

Volatility and Risk

Meet Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, LinkedIn Corp has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Profitability

This table compares Meet Group and LinkedIn Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meet Group 2.73% 1.41% 1.29%
LinkedIn Corp 0.95% 0.72% 0.49%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Meet Group and LinkedIn Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meet Group 0 0 3 0 3.00
LinkedIn Corp 0 3 0 0 2.00

Meet Group presently has a consensus target price of $8.25, indicating a potential upside of 128.53%. LinkedIn Corp has a consensus target price of $208.00, indicating a potential upside of 6.14%. Given Meet Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Meet Group is more favorable than LinkedIn Corp.

Summary

Meet Group beats LinkedIn Corp on 8 of the 11 factors compared between the two stocks.

Meet Group Company Profile

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.

LinkedIn Corp Company Profile

LinkedIn Corporation (LinkedIn) is a professional network on the Internet with approximately 400 million members in over 200 countries and territories. The Company provides the majority of its products at no cost to its members. It offers approximately three product lines: Talent Solutions, which includes Hiring, and Learning and Development; Marketing Solutions and Premium Subscriptions. Its products are sold through approximately two channels, an offline field sales organization, which engages with both large and small enterprise customers, as well as an online, self-serve channel, which includes enterprise customers and individual members purchasing subscriptions. Its solutions include Free Solutions and Monetized Solutions. Its Free Solutions include Stay Connected and Informed, and Advance My Career. The Company’s Monetized Solutions include Talent Solutions, which includes Hiring, and Learning and Development, Marketing Solutions and Premium Subscriptions.

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