Head to Head Survey: Pinterest (NYSE:PINS) and PSQ (NYSE:PSQH)

Pinterest (NYSE:PINS) and PSQ (NYSE:PSQH) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

88.8% of Pinterest shares are held by institutional investors. Comparatively, 17.3% of PSQ shares are held by institutional investors. 8.1% of Pinterest shares are held by insiders. Comparatively, 12.2% of PSQ shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Pinterest and PSQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinterest	1	18	18	1	2.50
PSQ	1	0	1	0	2.00

Pinterest currently has a consensus target price of $27.90, indicating a potential upside of 21.48%. PSQ has a consensus target price of $52.50, indicating a potential upside of 1,604.55%. Given PSQ’s higher probable upside, analysts clearly believe PSQ is more favorable than Pinterest.

Profitability

This table compares Pinterest and PSQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinterest	5.46%	7.49%	5.62%
PSQ	-132.73%	-284.61%	-52.34%

Volatility & Risk

Pinterest has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, PSQ has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares Pinterest and PSQ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinterest	$4.56 billion	2.82	$416.86 million	$0.34	67.55
PSQ	$27.03 million	0.38	-$36.61 million	($10.99)	-0.28

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

Summary

Pinterest beats PSQ on 13 of the 15 factors compared between the two stocks.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

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.