Pinterest (NYSE:PINS) & Locafy (NASDAQ:LCFY) Financial Analysis

Pinterest (NYSE:PINS) and Locafy (NASDAQ:LCFY) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Pinterest and Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinterest	51.07%	9.20%	7.79%
Locafy	-58.48%	-64.65%	-36.58%

Volatility and Risk

Pinterest has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Valuation & Earnings

This table compares Pinterest and Locafy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinterest	$3.65 billion	7.34	-$35.61 million	$2.69	14.73
Locafy	$2.76 million	3.41	-$1.96 million	($1.23)	-5.54

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

Institutional & Insider Ownership

88.8% of Pinterest shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 7.1% of Pinterest shares are held by insiders. Comparatively, 28.7% of Locafy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Pinterest and Locafy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinterest	0	8	22	0	2.73
Locafy	0	0	0	0	0.00

Pinterest currently has a consensus target price of $43.86, indicating a potential upside of 10.69%. Given Pinterest’s stronger consensus rating and higher probable upside, analysts plainly believe Pinterest is more favorable than Locafy.

Summary

Pinterest beats Locafy on 11 of the 14 factors compared between the two stocks.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.