Facebook (NASDAQ:FB) versus Pluralsight (NASDAQ:PS) Financial Survey

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Facebook (NASDAQ:FB) and Pluralsight (NASDAQ:PS) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Volatility & Risk

Facebook has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Pluralsight has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500.

Valuation & Earnings

This table compares Facebook and Pluralsight’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Facebook $55.84 billion 9.39 $22.11 billion $7.57 24.28
Pluralsight $232.03 million 9.49 -$97.11 million ($1.46) -10.77

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

Profitability

This table compares Facebook and Pluralsight’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Facebook 27.26% 20.09% 16.40%
Pluralsight -28.32% -47.43% -16.25%

Analyst Recommendations

This is a summary of current recommendations and price targets for Facebook and Pluralsight, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Facebook 0 3 41 0 2.93
Pluralsight 0 1 10 0 2.91

Facebook currently has a consensus price target of $222.42, indicating a potential upside of 21.01%. Pluralsight has a consensus price target of $34.40, indicating a potential upside of 118.82%. Given Pluralsight’s higher probable upside, analysts plainly believe Pluralsight is more favorable than Facebook.

Insider & Institutional Ownership

62.4% of Facebook shares are owned by institutional investors. Comparatively, 74.3% of Pluralsight shares are owned by institutional investors. 14.5% of Facebook shares are owned by insiders. Comparatively, 23.2% of Pluralsight shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Facebook beats Pluralsight on 9 of the 14 factors compared between the two stocks.

Facebook Company Profile

Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. The company's products include Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing photos, videos, and messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application for use by people and businesses to communicate in a private way. It also provides Oculus, a hardware, software, and developer ecosystem, which allows people to come together and connect with each other through its Oculus virtual reality products. As of December 31, 2018, it had approximately 1.52 billion daily active users. The company was founded in 2004 and is headquartered in Menlo Park, California.

Pluralsight Company Profile

Pluralsight, Inc. provides a technology skill development solutions worldwide. Its cloud-based technology skills platform offers a range of tools, including skill and role assessment tool, which uses machine learning and advanced algorithms to measure a user's skills, benchmark that user against others in the industry, and recommend opportunities for growth; and Course Library that include a digital ecosystem of thousands of on-demand courses across a range of technology subject areas, such as cloud, mobile, security, IT, and data. The company's platform also provides Learning Paths that are personalized to take users through a set of courses designed to help them master a particular subject area based on either an assessment or a user's goals; and business analytics tools, which enable business customers to evaluate the technology skills of their teams, align learning to key business objectives, determine the usage of platform, examine trends in skill development, and quantify the impact of platform on their business. It serves businesses and individuals. Pluralsight, Inc. was founded in 2004 and is headquartered in Farmington, Utah.

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