Bumble (NASDAQ:BMBL) versus Snap (NYSE:SNAP) Head-To-Head Contrast

Snap (NYSE:SNAP) and Bumble (NASDAQ:BMBL) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Insider & Institutional Ownership

47.5% of Snap shares are owned by institutional investors. Comparatively, 94.8% of Bumble shares are owned by institutional investors. 15.3% of Bumble shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Snap has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Bumble has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Snap and Bumble, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap	2	23	11	1	2.30
Bumble	2	14	1	0	1.94

Snap presently has a consensus price target of $7.31, indicating a potential upside of 47.01%. Bumble has a consensus price target of $4.04, indicating a potential downside of 32.31%. Given Snap’s stronger consensus rating and higher probable upside, research analysts plainly believe Snap is more favorable than Bumble.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Snap	-2.30%	-7.10%	-2.00%
Bumble	-62.87%	39.69%	19.92%

Valuation and Earnings

This table compares Snap and Bumble”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap	$5.93 billion	1.42	-$460.49 million	($0.09)	-55.23
Bumble	$854.16 million	0.92	-$693.14 million	($4.23)	-1.41

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

Summary

Snap beats Bumble on 9 of the 15 factors compared between the two stocks.

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.

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.