Reviewing Pinterest (NYSE:PINS) and Vivid Seats (NASDAQ:SEAT)

Pinterest (NYSE:PINS) and Vivid Seats (NASDAQ:SEAT) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Risk & Volatility

Pinterest has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Vivid Seats has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Pinterest and Vivid Seats, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinterest	0	19	18	0	2.49
Vivid Seats	2	6	2	0	2.00

Pinterest currently has a consensus target price of $27.90, indicating a potential upside of 50.36%. Vivid Seats has a consensus target price of $10.27, indicating a potential upside of 166.67%. Given Vivid Seats’ higher possible upside, analysts plainly believe Vivid Seats is more favorable than Pinterest.

Earnings & Valuation

This table compares Pinterest and Vivid Seats”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinterest	$4.22 billion	2.46	$416.86 million	$0.34	54.58
Vivid Seats	$570.78 million	0.08	-$429.30 million	($45.51)	-0.08

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

Insider and Institutional Ownership

88.8% of Pinterest shares are owned by institutional investors. Comparatively, 39.9% of Vivid Seats shares are owned by institutional investors. 8.1% of Pinterest shares are owned by insiders. Comparatively, 60.5% of Vivid Seats shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pinterest	5.46%	7.49%	5.62%
Vivid Seats	-60.26%	-211.26%	0.91%

Summary

Pinterest beats Vivid Seats on 11 of the 14 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 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.