Facebook (FB) and Its Peers Financial Survey

Facebook (NASDAQ: FB) is one of 44 publicly-traded companies in the “Computer programming, data processing, & other computer related” industry, but how does it compare to its competitors? We will compare Facebook to similar companies based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Volatility and Risk

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Facebook has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Facebook’s competitors have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.



Valuation & Earnings

This table compares Facebook and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Facebook $40.65 billion $15.93 billion 25.92
Facebook Competitors $6.96 billion $963.84 million 39.20

Facebook has higher revenue and earnings than its competitors. Facebook is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Facebook and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Facebook 39.16% 26.49% 23.73%
Facebook Competitors -414.49% -88.96% -30.74%

Insider and Institutional Ownership

58.6% of Facebook shares are owned by institutional investors. Comparatively, 47.1% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 16.3% of Facebook shares are owned by company insiders. Comparatively, 16.2% of shares of all “Computer programming, data processing, & other computer related” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Facebook and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Facebook 1 2 42 1 2.93
Facebook Competitors 509 1915 4657 230 2.63

Facebook currently has a consensus price target of $209.41, indicating a potential upside of 31.14%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 9.56%. Given Facebook’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Facebook is more favorable than its competitors.

Summary

Facebook beats its competitors on 10 of the 13 factors compared.

About Facebook

Facebook, Inc. is focused on building products that enable people to connect and share through mobile devices, personal computers and other surfaces. The Company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus. Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. Instagram enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends. Messenger allows communicating with people and businesses alike across a range of platforms and devices. WhatsApp Messenger is a messaging application that is used by people around the world and is available on a range of mobile platforms. Its Oculus virtual reality technology and content platform offers products that allow people to enter an interactive environment to play games, consume content and connect with others.

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