Contrasting LinkedIn Corp (LNKD) & MeetMe (MEET)

LinkedIn Corp (NYSE: LNKD) and MeetMe (NASDAQ:MEET) are both social media & networking companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Earnings and Valuation

This table compares LinkedIn Corp and MeetMe’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
LinkedIn Corp N/A N/A N/A ($1.24) -158.03
MeetMe $76.12 million 2.16 $46.26 million $0.20 11.45

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

Institutional & Insider Ownership

64.0% of LinkedIn Corp shares are owned by institutional investors. Comparatively, 56.9% of MeetMe shares are owned by institutional investors. 12.7% of LinkedIn Corp shares are owned by company insiders. Comparatively, 4.7% of MeetMe shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares LinkedIn Corp and MeetMe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LinkedIn Corp 0.95% 0.72% 0.49%
MeetMe 11.90% 10.85% 10.02%

Risk and Volatility

LinkedIn Corp has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, MeetMe has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for LinkedIn Corp and MeetMe, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LinkedIn Corp 0 0 0 0 N/A
MeetMe 0 2 2 0 2.50

MeetMe has a consensus target price of $8.06, suggesting a potential upside of 252.07%. Given MeetMe’s higher possible upside, analysts plainly believe MeetMe is more favorable than LinkedIn Corp.

Summary

MeetMe beats LinkedIn Corp on 7 of the 10 factors compared between the two stocks.

About LinkedIn Corp

LinkedIn Corporation (LinkedIn) is a professional network on the Internet with approximately 400 million members in over 200 countries and territories. The Company provides the majority of its products at no cost to its members. It offers approximately three product lines: Talent Solutions, which includes Hiring, and Learning and Development; Marketing Solutions and Premium Subscriptions. Its products are sold through approximately two channels, an offline field sales organization, which engages with both large and small enterprise customers, as well as an online, self-serve channel, which includes enterprise customers and individual members purchasing subscriptions. Its solutions include Free Solutions and Monetized Solutions. Its Free Solutions include Stay Connected and Informed, and Advance My Career. The Company’s Monetized Solutions include Talent Solutions, which includes Hiring, and Learning and Development, Marketing Solutions and Premium Subscriptions.

About MeetMe

The Meet Group, Inc., formerly MeetMe, Inc., offers a portfolio of mobile applications. The Company operates location-based social networks for meeting new people on mobile platforms, including on iPhone, Android, iPad and other tablets, and on the Web that facilitate interactions among users, and helps users to connect and chat with each other. The Company offers online marketing capabilities, which enable marketers to display their advertisements in different formats and in different locations. The Company holds interest in Skout, Inc. (Skout), which serves as a global mobile network for meeting new people. The Company’s social networking products include Chat, Profile and Friends. Its social discovery products facilitate interactions among members. The Company’s social discovery products include Meet, Discuss and Buzz, and Interested. The Company’s products also include Social Theater.

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