Critical Analysis: Pintec Technology (NASDAQ:PT) versus Snap (NYSE:SNAP)

Snap (NYSE:SNAP) and Pintec Technology (NASDAQ:PT) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares Snap and Pintec Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap	-13.02%	-25.67%	-7.55%
Pintec Technology	N/A	N/A	N/A

Volatility & Risk

Snap has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Pintec Technology has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Institutional & Insider Ownership

47.5% of Snap shares are owned by institutional investors. Comparatively, 6.6% of Pintec Technology shares are owned by institutional investors. 22.7% of Snap shares are owned by company insiders. Comparatively, 4.1% of Pintec Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Snap and Pintec Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap	1	25	7	0	2.18
Pintec Technology	0	1	0	0	2.00

Snap presently has a consensus target price of $36.87, suggesting a potential upside of 243.98%. Given Snap’s stronger consensus rating and higher possible upside, research analysts plainly believe Snap is more favorable than Pintec Technology.

Valuation & Earnings

This table compares Snap and Pintec Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap	$5.36 billion	3.35	-$1.32 billion	($0.42)	-25.52
Pintec Technology	$7.44 million	2.22	-$11.12 million	N/A	N/A

Pintec Technology has lower revenue, but higher earnings than Snap.

Summary

Snap beats Pintec Technology on 8 of the 12 factors compared between the two stocks.

About Snap

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

About Pintec Technology

Pintec Technology Holdings Limited, together with its subsidiaries, engages in the provision of technology-enabled financial and digital services to the ecosystem of MSMEs and SMEs in the People’s Republic of China. The company connects business partners and financial partners on its open platform and enables them to provide financial services to end users. It provides point-of-sale financing solutions to its business partners on their platforms or on its own platform under the Dumiao brand; and business installment loan solutions to its business partners on their platforms or on its own platform. The company also offers wealth management solutions, including a fund distribution solution that enables partners to offer and distribute mutual fund products to their customers, either under its Hongdian brand or as a white label solution; and a robo-advisory solution under the Polaris brand which enables its financial and business partners to provide robo-advisory services to their customers. In addition, it provides international installment loan solutions; Myfin, an insurance solution, that enables its partners to offer and distribute insurance products to its users; value added tools to business and financial partners for deploying its solutions, monitor and evaluate performance, and scale their business; digital marketing tools to target users, implement intelligent digital marketing activities, and increase marketing efficiencies and effectiveness; and real time monitoring tools that offer comprehensive and visualized performance monitoring interface. The company was founded in 2012 and is headquartered in Beijing, the People’s Republic of China.