WEBTOON Entertainment Inc. (WBTN) vs Yelp Inc. (YELP)

WEBTOON Entertainment Inc. and Yelp Inc. are both Internet Content & Information companies. WEBTOON Entertainment Inc. is the larger, with a market value of $1.5B against $996.8M — 1.5× the size. WEBTOON Entertainment Inc. has negative trailing earnings, so its P/E is not meaningful; Yelp Inc. trades at 8.6×. Yelp Inc. grew revenue faster over the last twelve months: 1.50% against −0.49%. Yelp Inc. has the higher net margin (8.59% vs −25.1%) and the higher return on invested capital (16.6% vs −5.26%). Across the 18 metrics below, Yelp Inc. leads on 12 and WEBTOON Entertainment Inc. on 6.

Valuation

Metric WBTN YELP Internet Content & Information median
P/E n/m 8.57 10.24
P/S 1.09 0.68 0.87
P/B 1.25 1.55 1.32
Price to free cash flow n/m 3.44 8.85
EV/EBITDA 2.86 3.73 8.86
EV/Sales 0.67 0.68 1.15
Earnings yield (23.82%) 11.66% (1.58%)
Free cash flow yield (0.92%) 29.05% 2.32%

Profitability

Metric WBTN YELP Internet Content & Information median
Gross margin 24.45% 89.65% 66.84%
Operating margin (3.78%) 11.73% (3.41%)
Net margin (25.14%) 8.59% (3.02%)
Free cash flow margin (1.00%) 20.19% 1.75%
Return on equity (24.94%) 18.19% 0.00%
Return on assets (19.11%) 12.84% (0.36%)
Return on invested capital (5.26%) 16.61% 0.00%

Growth

Metric WBTN YELP Internet Content & Information median
Revenue growth (TTM) (0.49%) 1.50% 2.65%
EPS growth (last fiscal year) (119.83%) 19.15% —
Revenue growth, 5-year CAGR — 10.91% 9.73%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric WBTN YELP Internet Content & Information median
Debt to equity 0.00 0.16 0.01
Current ratio 2.63 1.75 1.82
Net debt to EBITDA (1.89) (1.16) (0.48)

Dividend

Metric WBTN YELP Internet Content & Information median
Dividend yield — — 3.19%
Payout ratio — 0.00 0.00

Size

Metric WBTN YELP Internet Content & Information median
Market cap 1.48b 996.82m 283.68m

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