CyberAgent (OTCMKTS:CYGIY) versus Meta Platforms (NASDAQ:META) Financial Analysis

Meta Platforms (NASDAQ:META) and CyberAgent (OTCMKTS:CYGIY) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Volatility & Risk

Meta Platforms has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Profitability

This table compares Meta Platforms and CyberAgent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meta Platforms	29.83%	33.18%	20.07%
CyberAgent	4.57%	17.63%	9.06%

Insider and Institutional Ownership

79.9% of Meta Platforms shares are held by institutional investors. 13.5% of Meta Platforms shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Meta Platforms and CyberAgent”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meta Platforms	$228.25 billion	8.10	$60.46 billion	$26.55	27.34
CyberAgent	$5.86 billion	0.65	$212.18 million	$0.27	13.89

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

Analyst Ratings

This is a breakdown of current ratings for Meta Platforms and CyberAgent, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meta Platforms	0	10	44	3	2.88
CyberAgent	0	1	0	0	2.00

Meta Platforms presently has a consensus price target of $787.86, indicating a potential upside of 8.53%. Given Meta Platforms’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Meta Platforms is more favorable than CyberAgent.

Summary

Meta Platforms beats CyberAgent on 15 of the 15 factors compared between the two stocks.

About Meta Platforms

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.