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 $1.88T against $10.9B — 172.3× the size. Snap Inc. has negative trailing earnings, so its P/E is not meaningful; Meta Platforms, Inc. trades at 26.4×. Meta Platforms, Inc. grew revenue faster over the last twelve months: 27.7% against 12.7%. Meta Platforms, Inc. has the higher net margin (29.8% vs −4.90%) and the higher return on invested capital (21.3% vs −7.22%). Across the 20 metrics below, Meta Platforms, Inc. leads on 11 and Snap Inc. on 9.

Valuation

Metric META SNAP Internet Content & Information median
P/E 26.37 n/m 11.54
P/S 7.90 1.61 0.86
P/B 6.91 5.29 1.20
Price to free cash flow 44.02 14.67 9.63
EV/EBITDA 16.39 n/m 8.68
EV/Sales 7.87 1.74 1.18
Earnings yield 3.79% (2.94%) (2.42%)
Free cash flow yield 2.27% 6.82% 2.27%

Profitability

Metric META SNAP Internet Content & Information median
Gross margin 81.75% 57.33% 66.84%
Operating margin 38.08% (5.10%) (3.41%)
Net margin 29.84% (4.90%) (3.02%)
Free cash flow margin 17.95% 11.11% 1.75%
Return on equity 29.85% (15.58%) 0.00%
Return on assets 18.29% (4.19%) (0.36%)
Return on invested capital 21.34% (7.22%) 0.00%

Growth

Metric META SNAP Internet Content & Information median
Revenue growth (TTM) 27.65% 12.65% 2.65%
EPS growth (last fiscal year) (1.55%) 35.71% 34.45%
Revenue growth, 5-year CAGR 18.51% 18.80% 9.73%
Net income growth, 5-year CAGR 15.71% 0.00% 0.00%

Health

Metric META SNAP Internet Content & Information median
Debt to equity 0.32 1.83 0.01
Current ratio 2.23 2.94 1.82
Net debt to EBITDA (0.22) (1.65) (0.48)

Dividend

Metric META SNAP Internet Content & Information median
Dividend yield 0.30% — 1.07%
Payout ratio 0.08 — 0.28

Size

Metric META SNAP Internet Content & Information median
Market cap 1.88t 10.89b 318.52m

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