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DealMaker

Mode Mobile

Mode is disrupting the $1T+ smartphone market by turning smartphones into revenue streams for users. Join the EarnPhone revolution by investing in Deloitte’s #1 fastest-growing software company with 32,481% 3-year revenue growth, $60M+ in lifetime revenue, and partnerships with Best Buy, Walmart, Amazon, & Target.

Rad Intel

RAD Intel is an AI marketing intelligence platform that ensures brands engage in the right spaces before trends take off. More specifically, RAD’s AI-driven marketing intelligence platform helps brands predict what will work before it happens—identifying key topics, themes, content, and full campaigns.

Kingscrowd

Kingscrowd is building the Bloomberg data provider of the digital private markets. Our vision is to own the worlds private market data. 

Masterworks

Invest in multimillion dollar art by names like Banksy, Picasso, and Monet with shares

In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Meta Platforms META in comparison to its major competitors within the Interactive Media &amp; Services industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
<h3>Meta Platforms Background</h3>
Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm's "Family of Apps," its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta's overall sales.
<table>
<thead>
<tr>
<th>Company</th>
<th>P/E</th>
<th>P/B</th>
<th>P/S</th>
<th>ROE</th>
<th>EBITDA (in billions)</th>
<th>Gross Profit (in billions)</th>
<th>Revenue Growth</th>
</tr>
</thead>
<tbody>
<tr>
<td>Meta Platforms Inc</td>
<td>25.61</td>
<td>8.48</td>
<td>9.71</td>
<td>12.0%</td>
<td>$28.26</td>
<td>$39.55</td>
<td>20.63%</td>
</tr>
<tr>
<td>Alphabet Inc</td>
<td>20.53</td>
<td>6.19</td>
<td>5.87</td>
<td>8.3%</td>
<td>$36.5</td>
<td>$55.86</td>
<td>11.77%</td>
</tr>
<tr>
<td>Baidu Inc</td>
<td>10.73</td>
<td>0.94</td>
<td>1.86</td>
<td>1.98%</td>
<td>$9.27</td>
<td>$17.16</td>
<td>1.69%</td>
</tr>
<tr>
<td>Pinterest Inc</td>
<td>12.33</td>
<td>4.70</td>
<td>6.30</td>
<td>48.33%</td>
<td>$0.27</td>
<td>$0.96</td>
<td>17.62%</td>
</tr>
<tr>
<td>Kanzhun Ltd</td>
<td>41.13</td>
<td>4.17</td>
<td>8.85</td>
<td>3.04%</td>
<td>$0.33</td>
<td>$1.6</td>
<td>-4.6%</td>
</tr>
<tr>
<td>ZoomInfo Technologies Inc</td>
<td>137.88</td>
<td>2.23</td>
<td>3.29</td>
<td>0.87%</td>
<td>$0.02</td>
<td>$0.26</td>
<td>-2.31%</td>
</tr>
<tr>
<td>CarGurus Inc</td>
<td>156.65</td>
<td>6.04</td>
<td>3.72</td>
<td>8.95%</td>
<td>$0.06</td>
<td>$0.2</td>
<td>2.43%</td>
</tr>
<tr>
<td>Yelp Inc</td>
<td>20.41</td>
<td>3.35</td>
<td>1.92</td>
<td>5.69%</td>
<td>$0.07</td>
<td>$0.33</td>
<td>5.72%</td>
</tr>
<tr>
<td>Weibo Corp</td>
<td>8.52</td>
<td>0.69</td>
<td>1.49</td>
<td>0.25%</td>
<td>$0.14</td>
<td>$0.37</td>
<td>-1.65%</td>
</tr>
<tr>
<td>Tripadvisor Inc</td>
<td>377.25</td>
<td>2.25</td>
<td>1.19</td>
<td>0.11%</td>
<td>$0.03</td>
<td>$0.41</td>
<td>5.38%</td>
</tr>
<tr>
<td>Ziff Davis Inc</td>
<td>29.39</td>
<td>0.99</td>
<td>1.33</td>
<td>3.6%</td>
<td>$0.14</td>
<td>$0.37</td>
<td>5.88%</td>
</tr>
<tr>
<td>Hello Group Inc</td>
<td>8.36</td>
<td>0.67</td>
<td>0.82</td>
<td>1.66%</td>
<td>$0.56</td>
<td>$1.05</td>
<td>-1.43%</td>
</tr>
<tr>
<td>Average</td>
<td>74.83</td>
<td>2.93</td>
<td>3.33</td>
<td>7.53%</td>
<td>$4.31</td>
<td>$7.14</td>
<td>3.68%</td>
</tr>
</tbody>
</table>

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Upon analyzing Meta Platforms, the following trends can be observed: 
<ul>
<li>
With a Price to Earnings ratio of 25.61, which is 0.34x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
</li>
<li>
With a Price to Book ratio of 8.48, which is 2.89x the industry average, Meta Platforms might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
</li>
<li>
The stock's relatively high Price to Sales ratio of 9.71, surpassing the industry average by 2.92x, may indicate an aspect of overvaluation in terms of sales performance.
</li>
<li>
The company has a higher Return on Equity (ROE) of 12.0%, which is 4.47% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
</li>
<li>
The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $28.26 Billion, which is 6.56x above the industry average, indicating stronger profitability and robust cash flow generation.
</li>
<li>
With higher gross profit of $39.55 Billion, which indicates 5.54x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
</li>
<li>
The company's revenue growth of 20.63% is notably higher compared to the industry average of 3.68%, showcasing exceptional sales performance and strong demand for its products or services.
</li>
</ul>
<h3>Debt To Equity Ratio</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1743087631_0.png" alt="debt to equity" />

The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Meta Platforms can be assessed by comparing it to its top 4 peers, resulting in the following observations:
<ul>
<li>
Among its top 4 peers, Meta Platforms has a stronger financial position with a lower debt-to-equity ratio of 0.27.
</li>
<li>
This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively by investors.
</li>
</ul>
<h3>Key Takeaways</h3>
For Meta Platforms, the PE ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, Meta Platforms outperforms its peers, reflecting strong financial performance and growth potential in the Interactive Media &amp; Services industry.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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