Weibo (NASDAQ:WB – Get Free Report) and Grindr (NYSE:GRND – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations for Weibo and Grindr, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 2 | 3 | 1 | 0 | 1.83 | |
| Grindr | 0 | 1 | 5 | 0 | 2.83 |
Weibo currently has a consensus price target of $8.80, indicating a potential upside of 25.89%. Grindr has a consensus price target of $20.00, indicating a potential upside of 28.37%. Given Grindr’s stronger consensus rating and higher possible upside, analysts plainly believe Grindr is more favorable than Weibo.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| 17.78% | 8.87% | 4.96% | |
| Grindr | 18.75% | 357.13% | 20.08% |
Valuation & Earnings
This table compares Weibo and Grindr”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| $1.79 billion | 0.96 | $449.02 million | $1.21 | 5.78 | |
| Grindr | $439.90 million | 6.16 | $94.75 million | $0.50 | 31.16 |
Weibo has higher revenue and earnings than Grindr. Weibo is trading at a lower price-to-earnings ratio than Grindr, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Weibo has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Grindr has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.
Insider and Institutional Ownership
68.8% of Weibo shares are held by institutional investors. Comparatively, 7.2% of Grindr shares are held by institutional investors. 41.3% of Weibo shares are held by company insiders. Comparatively, 60.9% of Grindr shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Grindr beats Weibo on 10 of the 14 factors compared between the two stocks.
About Weibo
Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user’s trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product services for better displaying and promotion of its account and content; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, the People’s Republic of China.
About Grindr
Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.
Receive News & Ratings for Weibo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Weibo and related companies with MarketBeat.com's FREE daily email newsletter.
