Comparing Bumble (NASDAQ:BMBL) & EverQuote (NASDAQ:EVER)

EverQuote (NASDAQ:EVER) and Bumble (NASDAQ:BMBL) are both small-cap communication services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

91.5% of EverQuote shares are owned by institutional investors. Comparatively, 94.8% of Bumble shares are owned by institutional investors. 23.7% of EverQuote shares are owned by insiders. Comparatively, 15.3% of Bumble shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for EverQuote and Bumble, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EverQuote	0	2	6	0	2.75
Bumble	2	15	1	0	1.94

EverQuote presently has a consensus price target of $28.17, suggesting a potential upside of 29.26%. Bumble has a consensus price target of $4.12, suggesting a potential downside of 30.63%. Given EverQuote’s stronger consensus rating and higher probable upside, analysts plainly believe EverQuote is more favorable than Bumble.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EverQuote	$692.52 million	1.13	$99.31 million	$3.08	7.07
Bumble	$965.66 million	0.81	-$693.14 million	($4.23)	-1.40

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

Risk and Volatility

EverQuote has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Bumble has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EverQuote	15.16%	50.29%	36.69%
Bumble	-58.99%	35.88%	17.46%

Summary

EverQuote beats Bumble on 11 of the 14 factors compared between the two stocks.

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.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.