Locafy (NASDAQ:LCFY – Get Free Report) and Pinterest (NYSE:PINS – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Locafy and Pinterest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Locafy | -58.48% | -64.65% | -36.58% |
| 51.07% | 9.20% | 7.79% |
Analyst Ratings
This is a summary of recent ratings and target prices for Locafy and Pinterest, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Locafy | 0 | 0 | 0 | 0 | 0.00 |
| 0 | 8 | 22 | 0 | 2.73 |
Risk and Volatility
Locafy has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Pinterest has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Valuation & Earnings
This table compares Locafy and Pinterest”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Locafy | $2.76 million | 3.41 | -$1.96 million | ($1.23) | -5.54 |
| $3.65 billion | 7.34 | -$35.61 million | $2.69 | 14.73 |
Locafy has higher earnings, but lower revenue 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 and Insider Ownership
0.0% of Locafy shares are held by institutional investors. Comparatively, 88.8% of Pinterest shares are held by institutional investors. 28.7% of Locafy shares are held by company insiders. Comparatively, 7.1% of Pinterest shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Pinterest beats Locafy on 11 of the 14 factors compared between the two stocks.
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.
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.
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