Financial Review: Twitter (TWTR) and Professional Diversity Network (IPDN)

Twitter (NYSE: TWTR) and Professional Diversity Network (NASDAQ:IPDN) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Twitter and Professional Diversity Network, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twitter 5 19 11 0 2.17
Professional Diversity Network 0 0 0 0 N/A

Twitter presently has a consensus price target of $28.25, indicating a potential downside of 39.44%. Given Twitter’s higher probable upside, equities analysts clearly believe Twitter is more favorable than Professional Diversity Network.

Earnings and Valuation

This table compares Twitter and Professional Diversity Network’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twitter $2.44 billion 14.37 -$108.06 million $0.06 777.50
Professional Diversity Network $22.05 million 0.77 -$22.28 million N/A N/A

Professional Diversity Network has lower revenue, but higher earnings than Twitter.

Profitability

This table compares Twitter and Professional Diversity Network’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twitter 0.57% 2.81% 1.92%
Professional Diversity Network -106.27% -50.94% -30.04%

Risk & Volatility

Twitter has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Professional Diversity Network has a beta of 3, suggesting that its stock price is 200% more volatile than the S&P 500.

Insider & Institutional Ownership

59.6% of Twitter shares are held by institutional investors. Comparatively, 4.5% of Professional Diversity Network shares are held by institutional investors. 10.8% of Twitter shares are held by company insiders. Comparatively, 19.0% of Professional Diversity Network shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Twitter beats Professional Diversity Network on 8 of the 11 factors compared between the two stocks.

About Twitter

Twitter, Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners. The company has operations in the United States and internationally. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.

About Professional Diversity Network

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. The company operates through three segments: Professional Diversity Network, National Association of Professional Women, and Noble Voice Operations. It serves various cultural groups, such as women; Hispanic-Americans; African-Americans; Asian-Americans; disabled; military professionals; lesbians, gays, bisexuals, and transgenders; and students and graduates. The company offers single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, and hiring campaign marketing and advertising, as well as e-newsletter marketing, research, and outreach services. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its Websites. The company serves federal, state, and local governments, as well as companies and contractors that serve governmental entities; small and medium sized businesses; and large enterprises. As of December 31, 2017, it had approximately 10,266,000 registered users. The company was founded in 2003 and is headquartered in Chicago, Illinois. Professional Diversity Network, Inc. is a subsidiary of Cosmic Forward Limited.

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