PSQ (NYSE:PSQH – Get Free Report) and BuzzFeed (NASDAQ:BZFD – Get Free Report) are both small-cap communication services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Volatility and Risk
PSQ has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 3.78, suggesting that its share price is 278% more volatile than the S&P 500.
Institutional & Insider Ownership
17.3% of PSQ shares are owned by institutional investors. Comparatively, 37.6% of BuzzFeed shares are owned by institutional investors. 12.2% of PSQ shares are owned by insiders. Comparatively, 15.6% of BuzzFeed shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PSQ | $18.22 million | 1.02 | -$36.61 million | ($10.99) | -0.50 |
| BuzzFeed | $170.71 million | 0.54 | -$57.72 million | ($1.54) | -0.72 |
PSQ has higher earnings, but lower revenue than BuzzFeed. BuzzFeed is trading at a lower price-to-earnings ratio than PSQ, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PSQ and BuzzFeed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PSQ | -132.73% | -284.61% | -52.34% |
| BuzzFeed | -35.83% | -113.86% | -34.00% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for PSQ and BuzzFeed, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PSQ | 1 | 0 | 1 | 0 | 2.00 |
| BuzzFeed | 1 | 1 | 0 | 0 | 1.50 |
PSQ presently has a consensus price target of $52.50, suggesting a potential upside of 854.55%. BuzzFeed has a consensus price target of $1.00, suggesting a potential downside of 9.91%. Given PSQ’s stronger consensus rating and higher possible upside, analysts plainly believe PSQ is more favorable than BuzzFeed.
Summary
BuzzFeed beats PSQ on 8 of the 14 factors compared between the two stocks.
About PSQ
PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, Florida.
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.
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