BuzzFeed (NASDAQ:BZFD – Get Free Report) and PSQ (NYSE:PSQH – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Valuation and Earnings
This table compares BuzzFeed and PSQ”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BuzzFeed | $185.27 million | 0.22 | -$57.72 million | ($1.56) | -0.31 |
| PSQ | $18.22 million | 0.17 | -$36.61 million | ($8.09) | -0.11 |
PSQ has lower revenue, but higher earnings 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.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for BuzzFeed and PSQ, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BuzzFeed | 1 | 1 | 0 | 0 | 1.50 |
| PSQ | 1 | 0 | 0 | 0 | 1.00 |
BuzzFeed currently has a consensus target price of $1.00, indicating a potential upside of 107.47%. Given BuzzFeed’s stronger consensus rating and higher possible upside, equities analysts clearly believe BuzzFeed is more favorable than PSQ.
Institutional and Insider Ownership
37.6% of BuzzFeed shares are held by institutional investors. Comparatively, 17.3% of PSQ shares are held by institutional investors. 15.6% of BuzzFeed shares are held by insiders. Comparatively, 12.2% of PSQ shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares BuzzFeed and PSQ’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BuzzFeed | -47.98% | -160.99% | -44.67% |
| PSQ | -93.52% | -333.38% | -43.84% |
Volatility and Risk
BuzzFeed has a beta of 4.02, suggesting that its stock price is 302% more volatile than the S&P 500. Comparatively, PSQ has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.
Summary
BuzzFeed beats PSQ on 10 of the 13 factors compared between the two stocks.
About BuzzFeed
BuzzFeed, Inc. is a digital media company that creates and distributes news, entertainment and lifestyle content. Its brands include BuzzFeed and HuffPost, with coverage ranging from current events and culture to food and lifestyle topics. The company reaches audiences through its websites, apps, social media channels and other digital platforms. BuzzFeed was founded in 2006 by Jonah Peretti, who continues to serve as its chief executive officer. The company acquired HuffPost in 2020. BuzzFeed also operated BuzzFeed News, which it shut down in 2023.
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.
Receive News & Ratings for BuzzFeed Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BuzzFeed and related companies with MarketBeat.com's FREE daily email newsletter.
