Comparing Professional Diversity Network (NASDAQ:IPDN) & First Advantage (NYSE:FA)

Professional Diversity Network (NASDAQ:IPDN) and First Advantage (NYSE:FA) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Insider & Institutional Ownership

27.8% of Professional Diversity Network shares are owned by institutional investors. Comparatively, 94.9% of First Advantage shares are owned by institutional investors. 0.4% of Professional Diversity Network shares are owned by company insiders. Comparatively, 4.4% of First Advantage shares are owned by company 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Professional Diversity Network and First Advantage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Professional Diversity Network	1	0	0	0	1.00
First Advantage	0	4	3	0	2.43

First Advantage has a consensus price target of $25.00, suggesting a potential upside of 16.01%. Given First Advantage’s stronger consensus rating and higher possible upside, analysts plainly believe First Advantage is more favorable than Professional Diversity Network.

Volatility & Risk

Professional Diversity Network has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, First Advantage has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Professional Diversity Network and First Advantage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Professional Diversity Network	-143.98%	-76.40%	-54.04%
First Advantage	0.65%	13.16%	7.33%

Earnings & Valuation

This table compares Professional Diversity Network and First Advantage”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Professional Diversity Network	$6.55 million	0.10	-$6.45 million	($51.05)	-0.02
First Advantage	$1.72 billion	2.15	$37.29 million	$0.25	86.20

First Advantage has higher revenue and earnings than Professional Diversity Network. Professional Diversity Network is trading at a lower price-to-earnings ratio than First Advantage, indicating that it is currently the more affordable of the two stocks.

Summary

First Advantage beats Professional Diversity Network on 13 of the 14 factors compared between the two stocks.

About Professional Diversity Network

Professional Diversity Network, Inc. (NASDAQ: IPDN) operates online professional networking and career-development platforms focused on connecting diverse professionals with employers and employment opportunities. The company’s services are designed to support job seekers through professional networking, career resources and access to job listings, while helping employers reach specialized and underrepresented talent communities. The company has historically operated brands and online communities serving groups such as women, Hispanic and Latino professionals, military personnel and LGBTQ+ professionals.

About First Advantage

First Advantage provides technology-enabled background screening and verification services to employers and other organizations. Its offerings include criminal-record searches, employment and education verification, identity checks, drug and health screening, and related compliance services used in hiring and workforce management. The company serves customers across North America and international markets, including businesses that need screening processes across multiple locations. Its services are designed to help organizations assess candidates and manage workplace-related risks.