Bumble (NASDAQ:BMBL – Get Free Report) and Teads (NASDAQ:TEAD – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Earnings and Valuation
This table compares Bumble and Teads”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bumble | $965.66 million | 0.82 | -$693.14 million | ($4.36) | -1.38 |
| Teads | $1.30 billion | 0.01 | -$517.07 million | ($8.63) | -0.02 |
Teads has higher revenue and earnings than Bumble. Bumble is trading at a lower price-to-earnings ratio than Teads, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bumble and Teads’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bumble | -62.87% | 39.04% | 19.60% |
| Teads | -73.38% | -222.41% | -10.03% |
Analyst Recommendations
This is a breakdown of recent recommendations for Bumble and Teads, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bumble | 2 | 14 | 1 | 0 | 1.94 |
| Teads | 1 | 1 | 1 | 0 | 2.00 |
Bumble currently has a consensus price target of $4.04, indicating a potential downside of 32.76%. Teads has a consensus price target of $0.40, indicating a potential upside of 134.19%. Given Teads’ stronger consensus rating and higher probable upside, analysts plainly believe Teads is more favorable than Bumble.
Institutional and Insider Ownership
94.8% of Bumble shares are held by institutional investors. Comparatively, 60.4% of Teads shares are held by institutional investors. 15.3% of Bumble shares are held by insiders. Comparatively, 12.0% of Teads shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Bumble has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Teads has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.
Summary
Bumble beats Teads on 8 of the 12 factors compared between the two stocks.
About Bumble
Bumble Inc. operates online dating and social networking platforms, including Bumble, Badoo and Bumble For Friends. Its apps help users meet potential romantic partners, make friends and build social connections, with services available in markets around the world. The Bumble dating app launched in 2014, founded by Whitney Wolfe Herd. It became known for a design in which women initiate conversations in heterosexual matches; the company has since introduced additional ways for users to start conversations.
About Teads
Teads is a global advertising technology company that operates an omnichannel digital advertising platform. The company connects advertisers and agencies with publishers and audiences across digital media, helping brands plan, buy, deliver and measure advertising campaigns through a combination of technology, data and creative services. Its offerings include video, display, native, connected television and other digital advertising formats. Teads provides tools for campaign management, audience targeting, automated media buying, creative development and performance measurement.
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