WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) and Snap (NYSE:SNAP – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Analyst Recommendations
This is a summary of recent ratings and price targets for WEBTOON Entertainment and Snap, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WEBTOON Entertainment | 1 | 5 | 1 | 0 | 2.00 |
| Snap | 2 | 22 | 12 | 1 | 2.32 |
WEBTOON Entertainment presently has a consensus target price of $10.88, suggesting a potential upside of 17.38%. Snap has a consensus target price of $7.68, suggesting a potential upside of 52.77%. Given Snap’s stronger consensus rating and higher probable upside, analysts plainly believe Snap is more favorable than WEBTOON Entertainment.
Risk & Volatility
WEBTOON Entertainment has a beta of 2.65, meaning that its share price is 165% more volatile than the S&P 500. Comparatively, Snap has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Earnings and Valuation
This table compares WEBTOON Entertainment and Snap”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WEBTOON Entertainment | $1.38 billion | 0.91 | -$345.93 million | ($2.63) | -3.52 |
| Snap | $5.93 billion | 1.43 | -$460.49 million | ($0.18) | -27.92 |
WEBTOON Entertainment has higher earnings, but lower revenue than Snap. Snap is trading at a lower price-to-earnings ratio than WEBTOON Entertainment, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
47.5% of Snap shares are owned by institutional investors. 5.6% of WEBTOON Entertainment shares are owned by company insiders. Comparatively, 22.7% of Snap shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares WEBTOON Entertainment and Snap’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WEBTOON Entertainment | -25.09% | 2.10% | 1.60% |
| Snap | -4.90% | -14.61% | -4.12% |
Summary
Snap beats WEBTOON Entertainment on 10 of the 15 factors compared between the two stocks.
About WEBTOON Entertainment
WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.
About Snap
Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.
Receive News & Ratings for WEBTOON Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WEBTOON Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.
