Vivid Seats (NASDAQ:SEAT) vs. EverQuote (NASDAQ:EVER) Financial Review

Vivid Seats (NASDAQ:SEAT) and EverQuote (NASDAQ:EVER) are both small-cap communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Profitability

This table compares Vivid Seats and EverQuote’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vivid Seats	-60.26%	-211.26%	0.91%
EverQuote	15.16%	50.29%	36.69%

Analyst Recommendations

This is a summary of recent recommendations for Vivid Seats and EverQuote, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vivid Seats	2	6	2	0	2.00
EverQuote	0	2	6	0	2.75

Vivid Seats presently has a consensus price target of $10.27, indicating a potential upside of 257.72%. EverQuote has a consensus price target of $28.17, indicating a potential upside of 36.67%. Given Vivid Seats’ higher probable upside, equities research analysts plainly believe Vivid Seats is more favorable than EverQuote.

Institutional and Insider Ownership

39.9% of Vivid Seats shares are held by institutional investors. Comparatively, 91.5% of EverQuote shares are held by institutional investors. 60.5% of Vivid Seats shares are held by insiders. Comparatively, 23.7% of EverQuote shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Vivid Seats has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Earnings & Valuation

This table compares Vivid Seats and EverQuote”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vivid Seats	$570.78 million	0.06	-$429.30 million	($45.51)	-0.06
EverQuote	$692.52 million	1.07	$99.31 million	$3.08	6.69

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

Summary

EverQuote beats Vivid Seats on 10 of the 13 factors compared between the two stocks.

About Vivid Seats

Vivid Seats Inc. operates an online ticket marketplace in the United States, Canada, and Japan. The company operates in two segments, Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers; processes ticket sales on its website and mobile applications through its distribution partners; and sells tickets for sports, concerts, theater events, and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing, and fulfill orders across multiple ticket resale marketplaces; and Vivid Picks daily fantasy sports that allows users to partake in contests by making picks from various sport and player matchups. The Resale segment acquires tickets to resell on secondary ticket marketplaces; and provides internal research and development support for Skybox and to deliver seller software and tools. The company was founded in 2001 and is headquartered in Chicago, Illinois.

About EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.