Head to Head Comparison: MediaAlpha (NYSE:MAX) vs. BuzzFeed (NASDAQ:BZFD)

BuzzFeed (NASDAQ:BZFD) and MediaAlpha (NYSE:MAX) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

This table compares BuzzFeed and MediaAlpha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BuzzFeed	-35.83%	-113.86%	-34.00%
MediaAlpha	7.94%	-301.42%	28.23%

Earnings & Valuation

This table compares BuzzFeed and MediaAlpha”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BuzzFeed	$185.27 million	0.48	-$57.72 million	($1.54)	-0.69
MediaAlpha	$1.11 billion	0.65	$25.62 million	$1.62	7.24

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

Volatility and Risk

BuzzFeed has a beta of 3.78, meaning that its stock price is 278% more volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

37.6% of BuzzFeed shares are owned by institutional investors. Comparatively, 64.4% of MediaAlpha shares are owned by institutional investors. 15.6% of BuzzFeed shares are owned by company insiders. Comparatively, 14.6% of MediaAlpha shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for BuzzFeed and MediaAlpha, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BuzzFeed	1	1	0	0	1.50
MediaAlpha	0	5	3	1	2.56

BuzzFeed currently has a consensus price target of $1.00, suggesting a potential downside of 5.66%. MediaAlpha has a consensus price target of $14.29, suggesting a potential upside of 21.82%. Given MediaAlpha’s stronger consensus rating and higher possible upside, analysts clearly believe MediaAlpha is more favorable than BuzzFeed.

Summary

MediaAlpha beats BuzzFeed on 12 of the 15 factors compared between the two stocks.

About BuzzFeed

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.

About MediaAlpha

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.