Yelp (YELP) vs. Yext (YEXT) Critical Survey

Yelp (NYSE: YELP) and Yext (NYSE:YEXT) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Insider & Institutional Ownership

90.9% of Yelp shares are held by institutional investors. Comparatively, 29.2% of Yext shares are held by institutional investors. 10.1% of Yelp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Yelp and Yext’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yelp 1.67% 1.60% 1.45%
Yext N/A N/A N/A

Earnings & Valuation

This table compares Yelp and Yext’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Yelp $787.22 million 4.46 $43.09 million $0.15 286.33
Yext $145.43 million 8.98 -$52.13 million N/A N/A

Yelp has higher revenue and earnings than Yext.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Yelp and Yext, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yelp 0 16 18 0 2.53
Yext 0 2 2 0 2.50

Yelp currently has a consensus target price of $38.62, indicating a potential downside of 10.07%. Yext has a consensus target price of $16.25, indicating a potential upside of 12.30%. Given Yext’s higher possible upside, analysts clearly believe Yext is more favorable than Yelp.

Summary

Yelp beats Yext on 9 of the 11 factors compared between the two stocks.

About Yelp

Yelp Inc. (Yelp) connects people with local businesses by bringing ‘word of mouth’ online and providing a platform for businesses and consumers to engage and transact. The Company offers local business review sites. Yelp provides a platform for consumers to share their everyday local business experiences with other consumers by posting reviews, tips, photos and videos, and to engage directly with businesses, through reviews, its Request-A-Quote and Message the Business features, and by completing transactions on the Yelp Platform. Yelp also provides businesses of all sizes with a range of free and paid services that help them engage with consumers. The Yelp Platform allows consumers to transact with local businesses directly on Yelp through Yelp Eat24, the food ordering and delivery business; Yelp Reservations, its online reservations product, and integrations with partners ranging from Shoptiques.com (boutique shopping) to GolfNow (tee time booking) to BloomNation (flower ordering).

About Yext

Yext Inc. is a knowledge engine provider. Yext puts business on the map. The Yext Knowledge Engine enables companies to manage their digital knowledge in the cloud and sync it to over 100 services in the PowerListings Network, including Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri and Yelp. Yext Listings, Pages and Reviews help businesses around the globe and facilitate face-to-face digital interactions. Yext Knowledge Engine enables businesses to control and manage their digital knowledge and makes it available through the PowerListings Network of over 100 third-party maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories and social networks in a complete, up to date and accurate manner.

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