Pluralsight (NASDAQ:PS) vs. Facebook (NASDAQ:FB) Critical Survey

Pluralsight (NASDAQ:PS) and Facebook (NASDAQ:FB) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Risk and Volatility

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pluralsight $232.03 million 9.43 -$97.11 million ($1.46) -10.71
Facebook $55.84 billion 9.33 $22.11 billion $7.57 24.12

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

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

Institutional & Insider Ownership

81.9% of Pluralsight shares are held by institutional investors. Comparatively, 62.1% of Facebook shares are held by institutional investors. 23.2% of Pluralsight shares are held by company insiders. Comparatively, 14.5% of Facebook shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Pluralsight and Facebook, as reported by MarketBeat.com.

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

Pluralsight currently has a consensus price target of $34.40, indicating a potential upside of 120.08%. Facebook has a consensus price target of $222.42, indicating a potential upside of 21.81%. Given Pluralsight’s higher possible upside, equities research analysts plainly believe Pluralsight is more favorable than Facebook.

Summary

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

About Pluralsight

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.

About Facebook

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.

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