Analyzing BuzzFeed (NASDAQ:BZFD) and Slam (NASDAQ:SLAM)

BuzzFeed (NASDAQ:BZFD) and Slam (NASDAQ:SLAM) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares BuzzFeed and Slam’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BuzzFeed	-30.13%	-56.18%	-16.78%
Slam	N/A	-13.21%	2.04%

Institutional and Insider Ownership

37.6% of BuzzFeed shares are owned by institutional investors. Comparatively, 87.3% of Slam shares are owned by institutional investors. 22.8% of BuzzFeed shares are owned by insiders. Comparatively, 0.2% of Slam shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares BuzzFeed and Slam’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BuzzFeed	$252.68 million	0.23	-$88.58 million	($0.63)	-0.64
Slam	N/A	N/A	$4.59 million	N/A	N/A

Slam has lower revenue, but higher earnings than BuzzFeed.

Analyst Ratings

This is a summary of current recommendations and price targets for BuzzFeed and Slam, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BuzzFeed	0	0	0	0	N/A
Slam	0	0	0	0	N/A

BuzzFeed currently has a consensus target price of $1.50, suggesting a potential upside of 274.91%. Given BuzzFeed’s higher possible upside, research analysts clearly believe BuzzFeed is more favorable than Slam.

Summary

Slam beats BuzzFeed on 5 of the 8 factors compared between the two stocks.

About BuzzFeed

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.

About Slam

Slam Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or related business combination with one or more businesses or entities. Slam Corp. was incorporated in 2020 and is based in New York, New York.