Yelp (NYSE: YELP) is one of 50 publicly-traded companies in the “Internet Services” industry, but how does it compare to its competitors? We will compare Yelp to related businesses based on the strength of its valuation, risk, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Earnings & Valuation

This table compares Yelp and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Yelp $787.22 million $43.09 million 290.13
Yelp Competitors $952.95 million $127.27 million 56.85

Yelp’s competitors have higher revenue and earnings than Yelp. Yelp is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Yelp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yelp 1.67% 1.60% 1.45%
Yelp Competitors 0.22% 26.55% 6.19%

Risk & Volatility

Yelp has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Yelp’s competitors have a beta of 1.35, suggesting that their average share price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

90.9% of Yelp shares are held by institutional investors. Comparatively, 73.9% of shares of all “Internet Services” companies are held by institutional investors. 10.1% of Yelp shares are held by insiders. Comparatively, 19.5% of shares of all “Internet Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Yelp and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yelp 0 18 17 0 2.49
Yelp Competitors 398 1550 2607 86 2.51

Yelp currently has a consensus target price of $40.79, indicating a potential downside of 6.27%. As a group, “Internet Services” companies have a potential upside of 0.57%. Given Yelp’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Yelp has less favorable growth aspects than its competitors.

Summary

Yelp competitors beat Yelp on 10 of the 13 factors compared.

About Yelp

Yelp Inc. (Yelp) connects people with local businesses by bringing ‘word of mouth’ online and providing a platform for businesses and consumers to engage and transact. The Company offers local business review sites. Yelp provides a platform for consumers to share their everyday local business experiences with other consumers by posting reviews, tips, photos and videos, and to engage directly with businesses, through reviews, its Request-A-Quote and Message the Business features, and by completing transactions on the Yelp Platform. Yelp also provides businesses of all sizes with a range of free and paid services that help them engage with consumers. The Yelp Platform allows consumers to transact with local businesses directly on Yelp through Yelp Eat24, the food ordering and delivery business; Yelp Reservations, its online reservations product, and integrations with partners ranging from Shoptiques.com (boutique shopping) to GolfNow (tee time booking) to BloomNation (flower ordering).

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