Yellow Pages vs Yelp Which Performs Better?

Investors looking to capitalize on the local business advertising and review industry may find themselves torn between investing in Yellow Pages or Yelp stocks. Both companies offer platforms for businesses to reach customers and receive feedback, but there are significant differences in their business models and growth prospects. Yellow Pages relies heavily on traditional print advertising, while Yelp leverages digital marketing and user-generated content. Understanding the strengths and weaknesses of each company is crucial for making informed investment decisions in this competitive market.

Yellow Pages or Yelp?

When comparing Yellow Pages and Yelp, 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 Yellow Pages and Yelp.

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. Yellow Pages has a dividend yield of 9.4%, while Yelp has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Yellow Pages reports a 5-year dividend growth of 0.00% year and a payout ratio of 36.28%. On the other hand, Yelp 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 Yellow Pages P/E ratio at 3.67 and Yelp's P/E ratio at 21.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Yellow Pages P/B ratio is 2.34 while Yelp's P/B ratio is 3.45.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Yellow Pages has seen a 5-year revenue growth of -0.23%, while Yelp's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yellow Pages's ROE at 61.54% and Yelp's ROE at 16.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.44 for Yellow Pages and $35.89 for Yelp. Over the past year, Yellow Pages's prices ranged from $6.37 to $8.61, with a yearly change of 35.10%. Yelp's prices fluctuated between $32.56 and $48.99, with a yearly change of 50.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.