Financial Analysis: Bumble (NASDAQ:BMBL) vs. EverQuote (NASDAQ:EVER)

Bumble (NASDAQ:BMBL) and EverQuote (NASDAQ:EVER) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Earnings and Valuation

This table compares Bumble and EverQuote”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bumble	$965.66 million	0.35	-$693.14 million	($4.23)	-0.60
EverQuote	$692.52 million	1.03	$99.31 million	$3.08	6.43

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Bumble and EverQuote, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bumble	2	15	1	0	1.94
EverQuote	0	2	6	0	2.75

Bumble presently has a consensus target price of $3.87, suggesting a potential upside of 52.23%. EverQuote has a consensus target price of $28.17, suggesting a potential upside of 42.26%. Given Bumble’s higher probable upside, equities analysts clearly believe Bumble is more favorable than EverQuote.

Risk & Volatility

Bumble has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Insider & Institutional Ownership

94.8% of Bumble shares are held by institutional investors. Comparatively, 91.5% of EverQuote shares are held by institutional investors. 15.3% of Bumble shares are held by company insiders. Comparatively, 23.7% of EverQuote shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Bumble and EverQuote’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bumble	-58.99%	35.88%	17.46%
EverQuote	15.16%	50.29%	36.69%

Summary

EverQuote beats Bumble on 10 of the 14 factors compared between the two stocks.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.

About EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.