Critical Contrast: XO Group (XOXO) versus FTD Companies (FTD)

XO Group (NYSE: XOXO) and FTD Companies (NASDAQ:FTD) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Institutional and Insider Ownership

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85.4% of XO Group shares are held by institutional investors. Comparatively, 59.1% of FTD Companies shares are held by institutional investors. 7.0% of XO Group shares are held by insiders. Comparatively, 5.6% of FTD Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.



Analyst Recommendations

This is a breakdown of recent ratings for XO Group and FTD Companies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XO Group 0 2 1 0 2.33
FTD Companies 0 2 0 0 2.00

XO Group currently has a consensus target price of $21.50, indicating a potential upside of 0.94%. FTD Companies has a consensus target price of $6.75, indicating a potential upside of 8.00%. Given FTD Companies’ higher possible upside, analysts clearly believe FTD Companies is more favorable than XO Group.

Profitability

This table compares XO Group and FTD Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XO Group 3.45% 5.76% 4.82%
FTD Companies -19.47% 4.00% 1.80%

Volatility and Risk

XO Group has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, FTD Companies has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Earnings and Valuation

This table compares XO Group and FTD Companies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XO Group $160.56 million 3.41 $5.53 million $0.39 54.62
FTD Companies $1.08 billion 0.16 -$234.04 million $0.45 13.89

XO Group has higher earnings, but lower revenue than FTD Companies. FTD Companies is trading at a lower price-to-earnings ratio than XO Group, indicating that it is currently the more affordable of the two stocks.

Summary

XO Group beats FTD Companies on 11 of the 14 factors compared between the two stocks.

About XO Group

XO Group Inc. provides multiplatform media and marketplace services to the wedding, pregnancy and parenting, and local entertainment markets primarily in the United States. It operates a network of Websites under various brands, including The Knot, which offers wedding resources and marketplaces through wedding Website and mobile apps, national and local wedding magazines, and nationally published books; and The Bump, a pregnancy and parenting brand that provides personalized information, content, and tools for navigating the journey from fertility to pregnancy and parenting through the toddler years. The company's network of Websites also comprise GigMasters, an event marketplace for finding and booking the entertainment and vendors for birthday parties, weddings, anniversaries, corporate events, and others. It also offers local online advertising programs, such as online listings, digital advertisements, and direct email marketing; and national online advertising programs consisting of display advertisements, custom and brand-integrated content, direct emails, and placement in its online search tools. In addition, the company provides transaction offerings that include a registry service, which enables users to create, manage, and share various retail store registries from a single source; and retailer and local vendor offerings, such as invitations, stationery, reception decor, and personalized gifts. Further, it publishes The Knot national and regional magazines. The company was formerly known as The Knot, Inc. and changed its name to XO Group Inc. in June 2011. XO Group Inc. was founded in 1996 and is headquartered in New York, New York.

About FTD Companies

FTD Companies, Inc., through its subsidiaries, operates as a floral and gifting company primarily in the United States, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Consumer, Provide Commerce, Florist, and International. It provides floral arrangements and plants, gifts, and related products and services to consumers, retail florists, and other retail locations and companies. The company also markets and sells gift items, including gourmet-dipped berries and other specialty foods, personalized gifts, fresh fruit baskets, gift baskets, wine and champagne, jewelry, and spa products, as well as gourmet food products; and provides point-of-sale systems and related technology services to floral network members. FTD Companies, Inc. offers its products under the ProFlowers, ProPlants, Shari's Berries, Personal Creations, Mercury Man logo, FTD, Interflora, RedEnvelope, Flying Flowers, Flowers Direct, Ink Cards, Postagram, and Gifts.com through its Websites, associated mobile sites and applications, and telephone. The company was formerly known as UNOL Intermediate, Inc. FTD Companies, Inc. is headquartered in Downers Grove, Illinois.

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