Yelp (NYSE:YELP) & Phoenix New Media (NYSE:FENG) Head to Head Review
by Danessa Lincoln · The Markets DailyPhoenix New Media (NYSE:FENG – Get Free Report) and Yelp (NYSE:YELP – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Earnings and Valuation
This table compares Phoenix New Media and Yelp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phoenix New Media | $109.47 million | 0.15 | $50,000.00 | $0.36 | 3.87 |
| Yelp | $1.46 billion | 0.73 | $145.60 million | $2.11 | 9.28 |
Yelp has higher revenue and earnings than Phoenix New Media. Phoenix New Media is trading at a lower price-to-earnings ratio than Yelp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Phoenix New Media and Yelp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phoenix New Media | 3.62% | 2.78% | 1.87% |
| Yelp | 8.59% | 19.52% | 13.44% |
Institutional and Insider Ownership
6.3% of Phoenix New Media shares are held by institutional investors. Comparatively, 90.1% of Yelp shares are held by institutional investors. 10.9% of Phoenix New Media shares are held by insiders. Comparatively, 8.3% of Yelp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and target prices for Phoenix New Media and Yelp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phoenix New Media | 1 | 0 | 0 | 0 | 1.00 |
| Yelp | 3 | 3 | 1 | 1 | 2.00 |
Yelp has a consensus price target of $25.14, indicating a potential upside of 28.39%. Given Yelp’s stronger consensus rating and higher probable upside, analysts plainly believe Yelp is more favorable than Phoenix New Media.
Risk and Volatility
Phoenix New Media has a beta of -0.25, meaning that its share price is 125% less volatile than the S&P 500. Comparatively, Yelp has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.
Summary
Yelp beats Phoenix New Media on 14 of the 15 factors compared between the two stocks.
About Phoenix New Media
Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.
About Yelp
Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click advertising and multi-location Ad products, as well as enables businesses to deliver targeted advertising to large and high-intent audience; and business listing page products. The company also offers other services comprising Yelp Guest Manager, a subscription-based suite of front-of-house management tools for restaurants, nightlife and certain other venues, which include online reservations, a waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as through hostless kiosks, and seating and server rotation management tools; Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content; and Yelp Fusion, which offers free access to various basic information through publicly available APIs, and paid access to content and data for consumer-facing enterprise use. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website and business app, as well as non-advertising partner arrangements. It has partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery. The company was incorporated in 2004 and is based in San Francisco, California.