Facebook (NASDAQ: FB) and LinkedIn Corp (NYSE:LNKD) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Facebook and LinkedIn Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Facebook 2 2 40 2 2.91
LinkedIn Corp 0 4 0 0 2.00

Facebook presently has a consensus target price of $183.70, suggesting a potential upside of 9.84%. LinkedIn Corp has a consensus target price of $204.00, suggesting a potential upside of 4.10%. Given Facebook’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Facebook is more favorable than LinkedIn Corp.

Valuation and Earnings

This table compares Facebook and LinkedIn Corp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Facebook $33.17 billion 14.64 $18.08 billion $4.39 38.10
LinkedIn Corp N/A N/A N/A ($1.24) -158.03

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

Insider & Institutional Ownership

57.3% of Facebook shares are held by institutional investors. Comparatively, 64.0% of LinkedIn Corp shares are held by institutional investors. 19.1% of Facebook shares are held by company insiders. Comparatively, 12.7% of LinkedIn Corp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Facebook and LinkedIn Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Facebook 38.84% 21.73% 19.68%
LinkedIn Corp 0.95% 0.72% 0.49%

Risk & Volatility

Facebook has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, LinkedIn Corp has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Summary

Facebook beats LinkedIn Corp on 10 of the 12 factors compared between the two stocks.

Facebook Company Profile

Facebook, Inc. is focused on building products that enable people to connect and share through mobile devices, personal computers and other surfaces. The Company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus. Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. Instagram enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends. Messenger allows communicating with people and businesses alike across a range of platforms and devices. WhatsApp Messenger is a messaging application that is used by people around the world and is available on a range of mobile platforms. Its Oculus virtual reality technology and content platform offers products that allow people to enter an interactive environment to play games, consume content and connect with others.

LinkedIn Corp Company Profile

LinkedIn Corporation (LinkedIn) is a professional network on the Internet with approximately 400 million members in over 200 countries and territories. The Company provides the majority of its products at no cost to its members. It offers approximately three product lines: Talent Solutions, which includes Hiring, and Learning and Development; Marketing Solutions and Premium Subscriptions. Its products are sold through approximately two channels, an offline field sales organization, which engages with both large and small enterprise customers, as well as an online, self-serve channel, which includes enterprise customers and individual members purchasing subscriptions. Its solutions include Free Solutions and Monetized Solutions. Its Free Solutions include Stay Connected and Informed, and Advance My Career. The Company’s Monetized Solutions include Talent Solutions, which includes Hiring, and Learning and Development, Marketing Solutions and Premium Subscriptions.

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