Snap vs Link Which Offers More Value?

Snap Inc. and LinkedIn Corporation are two high-profile companies in the technology sector that offer investors the opportunity to participate in the growth of social media and networking platforms. Snap, known for its popular app Snapchat, focuses on multimedia messaging and augmented reality experiences. LinkedIn, now a subsidiary of Microsoft, is a professional networking site aimed at connecting professionals and providing career development resources. Both companies have their own strengths and weaknesses, making them intriguing options for investors looking to diversify their portfolios within the technology industry.

Snap or Link?

When comparing Snap and Link, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Snap and Link.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Snap has a dividend yield of -%, while Link has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Snap reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Link reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Snap P/E ratio at -20.82 and Link's P/E ratio at -1.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Snap P/B ratio is 9.00 while Link's P/B ratio is 3.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Snap has seen a 5-year revenue growth of 2.15%, while Link's is -0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Snap's ROE at -43.31% and Link's ROE at -117.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.93 for Snap and HK$0.02 for Link. Over the past year, Snap's prices ranged from $8.29 to $17.90, with a yearly change of 115.92%. Link's prices fluctuated between HK$0.01 and HK$0.06, with a yearly change of 328.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.