Reviewing Sinclair (NASDAQ:SBGI) and BuzzFeed (NASDAQ:BZFD)

BuzzFeed (NASDAQ:BZFD) and Sinclair (NASDAQ:SBGI) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Earnings and Valuation

This table compares BuzzFeed and Sinclair”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BuzzFeed	$189.89 million	0.41	-$10.10 million	$0.33	6.18
Sinclair	$3.55 billion	0.29	$310.00 million	$2.01	7.24

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

Profitability

This table compares BuzzFeed and Sinclair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BuzzFeed	6.37%	-24.44%	-8.70%
Sinclair	3.72%	34.15%	2.23%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for BuzzFeed and Sinclair, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BuzzFeed	0	0	0	1	4.00
Sinclair	1	2	2	0	2.20

Sinclair has a consensus target price of $18.50, suggesting a potential upside of 27.15%. Given Sinclair’s higher possible upside, analysts clearly believe Sinclair is more favorable than BuzzFeed.

Insider & Institutional Ownership

37.6% of BuzzFeed shares are owned by institutional investors. Comparatively, 41.7% of Sinclair shares are owned by institutional investors. 19.2% of BuzzFeed shares are owned by company insiders. Comparatively, 41.9% of Sinclair shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

BuzzFeed has a beta of 3.46, indicating that its stock price is 246% more volatile than the S&P 500. Comparatively, Sinclair has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Summary

Sinclair beats BuzzFeed on 10 of the 15 factors compared between the two stocks.

About BuzzFeed

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.

About Sinclair

Sinclair, Inc., a media company, provides content on local television stations and digital platforms in the United States. It operates through two segments, Local Media and Tennis. The Local Media segment operates broadcast television stations, original networks, and content; provides free-over-the-air programming and live local sporting events on its stations; distributes its content to multi-channel video programming distributors in exchange for contractual fees; and produces local and original news programs. This segment operates The Nest, a free over-the-air national broadcast TV network; Comet, a science fiction network; CHARGE!, an adventure and action-based network; and TBD, a multiscreen TV network. The Tennis segment offers Tennis Channel, a cable network which includes coverage of tennis' top tournaments and original professional sports, and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com and Pickleballtv. It also provides digital and internet solutions; and technical services, including the design and manufacture of broadcast systems. The company distributes its content through broadcast platforms and third-party platforms that consist of programming provided by third-party networks and syndicators, local news, and other original programming. Sinclair, Inc. was founded in 1971 and is headquartered in Hunt Valley, Maryland.