PSQ (NYSE:PSQH – Get Free Report) and BuzzFeed (NASDAQ:BZFD – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Analyst Ratings
This is a breakdown of recent recommendations for PSQ and BuzzFeed, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PSQ | 1 | 0 | 0 | 0 | 1.00 |
| BuzzFeed | 1 | 1 | 0 | 0 | 1.50 |
BuzzFeed has a consensus price target of $1.00, suggesting a potential upside of 116.92%. Given BuzzFeed’s stronger consensus rating and higher probable upside, analysts clearly believe BuzzFeed is more favorable than PSQ.
Earnings and Valuation
This table compares PSQ and BuzzFeed”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PSQ | $29.97 million | 0.11 | -$36.61 million | ($8.09) | -0.12 |
| BuzzFeed | $185.27 million | 0.21 | -$57.72 million | ($1.56) | -0.30 |
PSQ has higher earnings, but lower revenue than BuzzFeed. BuzzFeed is trading at a lower price-to-earnings ratio than PSQ, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PSQ and BuzzFeed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PSQ | -93.52% | -266.43% | -42.35% |
| BuzzFeed | -47.98% | -156.65% | -42.59% |
Volatility and Risk
PSQ has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 4.02, meaning that its share price is 302% more volatile than the S&P 500.
Institutional & Insider Ownership
17.3% of PSQ shares are held by institutional investors. Comparatively, 37.6% of BuzzFeed shares are held by institutional investors. 12.2% of PSQ shares are held by company insiders. Comparatively, 15.6% of BuzzFeed shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
BuzzFeed beats PSQ on 10 of the 13 factors compared between the two stocks.
About PSQ
PSQ Holdings, Inc., operating under the PublicSquare brand, is a technology and commerce company focused on connecting consumers with businesses that share a commitment to family, community and other values emphasized by the company. Its platform is designed to help users discover and purchase products and services from participating merchants. PublicSquare provides a digital marketplace that includes consumer goods, services and business listings. The company has also pursued financial technology offerings intended to support transactions within its ecosystem, including payment-related services and other tools for consumers and merchants.
About BuzzFeed
BuzzFeed, Inc. (NASDAQ: BZFD) is a digital media company that develops and distributes news, entertainment, lifestyle and cultural content. Its content is published through websites, social media platforms, video services, newsletters and other digital channels, and is supported by advertising, content licensing, affiliate commerce and other commercial partnerships. The company’s portfolio includes the BuzzFeed brand, HuffPost and Tasty. BuzzFeed produces editorial articles, quizzes, videos and social content, while HuffPost focuses on news, opinion, lifestyle and culture.
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