Meta Platforms, Inc. (META) vs Snap Inc. (SNAP)

Meta Platforms, Inc. and Snap Inc. are both Internet Content & Information companies. Meta Platforms, Inc. is the larger, with a market value of $1.55T against $8.6B — 179.6× the size. Snap Inc. has negative trailing earnings, so its P/E is not meaningful; Meta Platforms, Inc. trades at 20.4×. Meta Platforms, Inc. grew revenue faster over the last twelve months: 27.5% against 13.8%. Meta Platforms, Inc. has the higher net margin (31.2% vs −2.30%) and the higher return on invested capital (18.3% vs −2.52%). Across the 21 metrics below, Meta Platforms, Inc. leads on 12 and Snap Inc. on 9.

Valuation

Metric META SNAP Internet Content & Information median
P/E 20.41 n/m 12.38
P/S 6.40 1.33 0.93
P/B 5.67 3.91 1.24
Price to free cash flow 53.95 11.39 10.76
EV/EBITDA 14.80 165.29 10.74
EV/Sales 6.39 1.44 1.20
Earnings yield 4.90% (1.75%) (1.71%)
Free cash flow yield 1.85% 8.78% 4.26%

Profitability

Metric META SNAP Internet Content & Information median
Gross margin 81.03% 59.11% 63.25%
Operating margin 32.86% (1.81%) (1.87%)
Net margin 31.15% (2.30%) (1.37%)
Free cash flow margin 11.86% 11.83% 3.47%
Return on equity 32.26% (6.78%) (1.19%)
Return on assets 19.23% (2.00%) 0.00%
Return on invested capital 18.32% (2.52%) 0.00%

Growth

Metric META SNAP Internet Content & Information median
Revenue growth (TTM) 27.53% 13.76% 6.92%
EPS growth (last fiscal year) (1.55%) 35.71% 34.37%
Revenue growth, 5-year CAGR 18.51% 18.80% 10.46%
Net income growth, 5-year CAGR 15.71% 0.00% 0.00%

Health

Metric META SNAP Internet Content & Information median
Debt to equity 0.30 1.56 0.01
Current ratio 1.90 3.36 1.84
Net debt to EBITDA (0.22) (1.65) (0.53)

Dividend

Metric META SNAP Internet Content & Information median
Dividend yield 0.35% — 1.19%
Payout ratio 0.07 — 0.27

Size

Metric META SNAP Internet Content & Information median
Market cap 1.55t 8.61b 693.23m

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