PSQ (NYSE:PSQH – Get Free Report) and BuzzFeed (NASDAQ:BZFD – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
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 insiders. Comparatively, 15.6% of BuzzFeed shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
PSQ has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 3.78, meaning that its stock price is 278% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PSQ | 1 | 0 | 1 | 0 | 2.00 |
| BuzzFeed | 1 | 1 | 0 | 0 | 1.50 |
PSQ currently has a consensus target price of $52.50, indicating a potential upside of 854.55%. BuzzFeed has a consensus target price of $1.00, indicating a potential downside of 9.91%. Given PSQ’s stronger consensus rating and higher probable upside, equities research analysts clearly believe PSQ is more favorable than BuzzFeed.
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 | $18.22 million | 1.02 | -$36.61 million | ($10.99) | -0.50 |
| BuzzFeed | $170.71 million | 0.54 | -$57.72 million | ($1.54) | -0.72 |
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 | -132.73% | -284.61% | -52.34% |
| BuzzFeed | -35.83% | -113.86% | -34.00% |
Summary
BuzzFeed beats PSQ on 8 of the 14 factors compared between the two stocks.
About PSQ
PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, Florida.
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.
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