Pinterest (NYSE:PINS – Get Free Report) and PSQ (NYSE:PSQH – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
88.8% of Pinterest shares are held by institutional investors. Comparatively, 17.3% of PSQ shares are held by institutional investors. 8.1% of Pinterest shares are held by insiders. Comparatively, 12.2% of PSQ shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Pinterest and PSQ, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 1 | 18 | 18 | 1 | 2.50 | |
| PSQ | 1 | 0 | 1 | 0 | 2.00 |
Pinterest currently has a consensus target price of $27.90, indicating a potential upside of 21.50%. PSQ has a consensus target price of $52.50, indicating a potential upside of 1,691.81%. Given PSQ’s higher probable upside, analysts clearly believe PSQ is more favorable than Pinterest.
Earnings & Valuation
This table compares Pinterest and PSQ”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| $4.22 billion | 3.05 | $416.86 million | $0.34 | 67.54 | |
| PSQ | $18.22 million | 0.54 | -$36.61 million | ($10.99) | -0.27 |
Pinterest has higher revenue and earnings than PSQ. PSQ is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Pinterest and PSQ’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 5.46% | 7.49% | 5.62% | |
| PSQ | -132.73% | -284.61% | -52.34% |
Risk & Volatility
Pinterest has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, PSQ has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
Summary
Pinterest beats PSQ on 13 of the 15 factors compared between the two stocks.
About Pinterest
Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
About PSQ
PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, Florida.
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