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

WEBTOON Entertainment Inc. and Yelp Inc. are both Internet Content & Information companies. WEBTOON Entertainment Inc. and Yelp Inc. are of similar size ($1.2B and $1.1B). WEBTOON Entertainment Inc. has negative trailing earnings, so its P/E is not meaningful; Yelp Inc. trades at 9.4×. 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 9.36 11.54
P/S 0.85 0.74 0.86
P/B 0.97 1.69 1.20
Price to free cash flow n/m 3.76 9.63
EV/EBITDA 1.82 4.07 8.68
EV/Sales 0.42 0.75 1.18
Earnings yield (30.58%) 10.69% (2.42%)
Free cash flow yield (1.18%) 26.62% 2.27%

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% 34.45%
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 — — 1.07%
Payout ratio — — 0.28

Size

Metric WBTN YELP Internet Content & Information median
Market cap 1.21b 1.11b 318.52m

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