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In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Meta Platforms (NASDAQ:META) against its key competitors in the Interactive Media & Services industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm's "Family of Apps," its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta's overall sales.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Meta Platforms Inc | 25.59 | 9.08 | 10.23 | 9.65% | $25.12 | $39.02 | 21.61% |
| Alphabet Inc | 25.22 | 7.88 | 7.84 | 7.96% | $39.19 | $57.39 | 13.79% |
| Baidu Inc | 11.12 | 1.08 | 2.26 | 2.69% | $8.84 | $14.36 | -3.59% |
| Reddit Inc | 88.64 | 15.57 | 21.27 | 3.88% | $0.07 | $0.45 | 77.69% |
| Pinterest Inc | 11.01 | 4.30 | 5.47 | 0.82% | $0.0 | $0.8 | 16.93% |
| Bilibili Inc | 357.37 | 5.53 | 2.74 | 1.53% | $0.81 | $2.68 | 19.76% |
| Trump Media & Technology Group Corp | 177.44 | 1.96 | 947.92 | -1.26% | $-0.01 | $0.0 | 5.54% |
| CarGurus Inc | 26.80 | 7.64 | 3.82 | 5.34% | $0.06 | $0.2 | 7.01% |
| ZoomInfo Technologies Inc | 39.84 | 2.04 | 2.78 | 1.5% | $0.09 | $0.26 | 5.21% |
| Weibo Corp | 8.07 | 0.77 | 1.72 | 3.58% | $0.15 | $0.34 | 1.58% |
| Yelp Inc | 13.89 | 2.56 | 1.42 | 5.98% | $0.07 | $0.33 | 3.75% |
| Tripadvisor Inc | 31.05 | 2.76 | 1.16 | 5.67% | $0.09 | $0.49 | 6.44% |
| Ziff Davis Inc | 22.37 | 0.79 | 1.04 | 1.44% | $0.09 | $0.3 | 9.79% |
| FuboTV Inc | 19.37 | 3.06 | 0.83 | -1.98% | $0.01 | $0.08 | -2.81% |
| Hello Group Inc | 10.40 | 0.73 | 0.83 | -1.28% | $0.53 | $1.01 | -2.64% |
| Average | 60.18 | 4.05 | 71.51 | 2.56% | $3.57 | $5.62 | 11.32% |
Upon a comprehensive analysis of Meta Platforms, the following trends can be discerned:
A Price to Earnings ratio of 25.59 significantly below the industry average by 0.43x suggests undervaluation. This can make the stock appealing for those seeking growth.
The elevated Price to Book ratio of 9.08 relative to the industry average by 2.24x suggests company might be overvalued based on its book value.
Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 10.23, which is 0.14x the industry average.
With a Return on Equity (ROE) of 9.65% that is 7.09% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $25.12 Billion is 7.04x above the industry average, highlighting stronger profitability and robust cash flow generation.
The gross profit of $39.02 Billion is 6.94x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
The company's revenue growth of 21.61% exceeds the industry average of 11.32%, indicating strong sales performance and market outperformance.
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
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 light of the Debt-to-Equity ratio, a comparison between Meta Platforms and its top 4 peers reveals the following information:
When considering the debt-to-equity ratio, Meta Platforms exhibits a stronger financial position compared to its top 4 peers.
This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.25, which can be perceived as a positive aspect by investors.
For Meta Platforms, the low PE ratio suggests potential undervaluation compared to peers in the Interactive Media & Services industry. The high PB ratio indicates a premium placed on the company's assets. A low PS ratio implies a favorable valuation based on revenue. The high ROE, EBITDA, gross profit, and revenue growth highlight strong financial performance relative to industry competitors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Posted In: META
