Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Meta Platforms META in comparison to its major competitors within the Interactive Media & Services industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
Meta Platforms Background
Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm's "Family of Apps," its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta's overall sales.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Meta Platforms Inc | 27.45 | 9.54 | 10.74 | 9.05% | $22.52 | $34.74 | 16.07% |
| Alphabet Inc | 19.73 | 6.21 | 6.03 | 10.3% | $46.31 | $53.87 | 12.04% |
| Baidu Inc | 8.63 | 0.80 | 1.63 | 2.89% | $9.8 | $14.96 | 2.98% |
| Pinterest Inc | 12.95 | 5.08 | 6.56 | 0.19% | $-0.03 | $0.66 | 15.54% |
| Reddit Inc | 25.29 | 10.50 | 15.52 | 1.2% | $0.01 | $0.36 | 61.49% |
| Kanzhun Ltd | 32.18 | 3.69 | 7.89 | 3.38% | $0.44 | $1.61 | 12.88% |
| Trump Media & Technology Group Corp | 16.82 | 5.80 | 1028.20 | -3.51% | $-0.03 | $0.0 | 6.58% |
| ZoomInfo Technologies Inc | 83.25 | 2 | 2.91 | 1.6% | $0.07 | $0.26 | -1.42% |
| CarGurus Inc | 84.92 | 7.72 | 3.66 | 8.27% | $0.05 | $0.2 | 4.34% |
| Weibo Corp | 7.09 | 0.70 | 1.48 | 3.09% | $0.11 | $0.31 | 0.34% |
| Yelp Inc | 17.47 | 3.12 | 1.72 | 3.31% | $0.05 | $0.32 | 7.75% |
| Tripadvisor Inc | 34.33 | 2.46 | 1.06 | -1.39% | $0.01 | $0.37 | 0.76% |
| Hello Group Inc | 7.98 | 0.88 | 1.05 | 3.21% | $0.44 | $0.95 | -1.55% |
| Ziff Davis Inc | 17.94 | 0.73 | 0.98 | 1.37% | $0.09 | $0.28 | 4.5% |
| Vtex | 92.22 | 4.92 | 5.41 | 0.34% | $0.0 | $0.04 | 2.9% |
| Taboola.com Ltd | 89 | 1.13 | 0.69 | -0.85% | $0.01 | $0.12 | 3.26% |
| Average | 36.65 | 3.72 | 72.32 | 2.23% | $3.82 | $4.95 | 8.83% |
By thoroughly analyzing Meta Platforms, we can discern the following trends:
-
At 27.45, the stock's Price to Earnings ratio is 0.75x less than the industry average, suggesting favorable growth potential.
-
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 9.54 which exceeds the industry average by 2.56x.
-
With a relatively low Price to Sales ratio of 10.74, which is 0.15x the industry average, the stock might be considered undervalued based on sales performance.
-
The company has a higher Return on Equity (ROE) of 9.05%, which is 6.82% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
-
With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $22.52 Billion, which is 5.9x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
-
With higher gross profit of $34.74 Billion, which indicates 7.02x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
-
The company's revenue growth of 16.07% is notably higher compared to the industry average of 8.83%, showcasing exceptional sales performance and strong demand for its products or services.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Meta Platforms can be assessed by comparing it to its top 4 peers, resulting in the following observations:
-
Meta Platforms demonstrates a stronger financial position compared to its top 4 peers in the sector.
-
With a lower debt-to-equity ratio of 0.27, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
Key Takeaways
The low PE ratio of Meta Platforms suggests that the company's stock price is relatively undervalued compared to its earnings. In contrast, the high PB ratio indicates that investors are willing to pay a premium for the company's book value. The low PS ratio implies that Meta Platforms is generating strong revenue relative to its market capitalization. On the other hand, the high ROE, EBITDA, gross profit, and revenue growth highlight the company's strong profitability and growth potential compared to its industry peers in the Interactive Media & Services sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
