Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Meta Platforms (NASDAQ:META) in comparison to its major competitors within the Interactive Media & Services industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
Meta Platforms Background Meta is the world's largest online social network, with nearly 4 billion family of apps monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm's total revenue, with more than 45% coming from the U.S. and Canada and over 20% from Europe.
| Meta Platforms Inc | 32.93 | 8.15 | 9.54 | 9.47% | $20.11 | $32.42 | 24.7% |
| Alphabet Inc | 23.87 | 6.07 | 5.73 | 7.43% | $26.04 | $48.73 | 13.49% |
| Baidu Inc | 17.04 | 1.05 | 1.97 | 2.79% | $9.03 | $18.15 | 5.86% |
| Kanzhun Ltd | 86.67 | 3.63 | 9.31 | 3.23% | $0.26 | $1.34 | 36.32% |
| ZoomInfo Technologies Inc | 62.07 | 3 | 5.37 | -0.25% | $0.24 | $0.27 | 4.91% |
| IAC Inc | 19.14 | 0.80 | 1.17 | 5.55% | $0.64 | $0.75 | -4.8% |
| TripAdvisor Inc | 382.86 | 4.24 | 2.17 | 3.78% | $0.07 | $0.35 | 10.17% |
| Ziff Davis Inc | 77.25 | 1.67 | 2.34 | 3.43% | $0.15 | $0.34 | -1.72% |
| Yelp Inc | 28.47 | 3.51 | 2.12 | 3.68% | $0.04 | $0.31 | 10.76% |
| CarGurus Inc | 116.53 | 3.86 | 2.77 | -3.56% | $-0.01 | $0.17 | -22.19% |
| Weibo Corp | 5.40 | 0.69 | 1.25 | 2.45% | $0.13 | $0.35 | -2.52% |
| Shutterstock Inc | 16.04 | 3.29 | 2.02 | -0.19% | $0.02 | $0.12 | -0.23% |
| Average | 75.94 | 2.89 | 3.29 | 2.58% | $3.33 | $6.44 | 4.55% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } By closely examining Meta Platforms, we can identify the following trends:
- A Price to Earnings ratio of 32.93 significantly below the industry average by 0.43x suggests undervaluation. This can make the stock appealing for those seeking growth.
- With a Price to Book ratio of 8.15, which is 2.82x the industry average, Meta Platforms might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
- The stock's relatively high Price to Sales ratio of 9.54, surpassing the industry average by 2.9x, may indicate an aspect of overvaluation in terms of sales performance.
- The Return on Equity (ROE) of 9.47% is 6.89% above the industry average, highlighting efficient use of equity to generate profits.
- The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $20.11 Billion is 6.04x above the industry average, highlighting stronger profitability and robust cash flow generation.
- The company has higher gross profit of $32.42 Billion, which indicates 5.03x above the industry average, indicating stronger profitability and higher earnings from its core operations.
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The company is experiencing remarkable revenue growth, with a rate of 24.7%, outperforming the industry average of 4.55%.
The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Meta Platforms can be assessed by comparing it to its top 4 peers, resulting in the following observations:
- Meta Platforms has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.24.
- This suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator by investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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