Reviewing MeetMe (MEET) & Twitter (TWTR)

MeetMe (NASDAQ: MEET) and Twitter (NYSE:TWTR) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
MeetMe 15.95% 11.47% 10.67%
Twitter -18.25% -2.91% -1.98%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MeetMe and Twitter, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MeetMe 0 0 3 0 3.00
Twitter 13 22 4 0 1.77

MeetMe presently has a consensus target price of $8.25, suggesting a potential upside of 127.90%. Twitter has a consensus target price of $15.27, suggesting a potential downside of 17.22%. Given MeetMe’s stronger consensus rating and higher probable upside, analysts plainly believe MeetMe is more favorable than Twitter.

Risk and Volatility

MeetMe has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Twitter has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

56.3% of MeetMe shares are held by institutional investors. Comparatively, 49.1% of Twitter shares are held by institutional investors. 4.7% of MeetMe shares are held by company insiders. Comparatively, 10.8% of Twitter shares are held 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.

Valuation & Earnings

This table compares MeetMe and Twitter’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MeetMe $97.80 million 2.66 $26.40 million $0.24 15.08
Twitter $2.46 billion 5.50 $142.67 million ($0.63) -29.29

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

Summary

MeetMe beats Twitter on 7 of the 13 factors compared between the two stocks.

MeetMe Company Profile

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.

Twitter Company Profile

Twitter, Inc. offers products and services for users, advertisers, developers and data partners. The Company’s products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Its Twitter is a platform for public self-expression and conversation in real time. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser. Its Promoted Products enable its advertisers to promote their brands, products and services, amplify their visibility and reach, and extend the conversation around their advertising campaigns. Promoted Accounts appear in the same format and place as accounts suggested by its Who to Follow recommendation engine, or in some cases, in Tweets in a user’s timeline. Promoted Trends appear at the top of the list of trending topics for an entire day in a particular country or on a global basis. Its MoPub is a mobile-focused advertising exchange. Twitter Audience Platform is an advertising offering.

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