Analyzing Pinterest (NYSE:PINS) & MongoDB (NASDAQ:MDB)

MongoDB (NASDAQ:MDB) and Pinterest (NYSE:PINS) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Valuation and Earnings

This table compares MongoDB and Pinterest”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MongoDB	$2.32 billion	13.04	-$129.07 million	($0.87)	-426.82
Pinterest	$3.65 billion	4.10	$1.86 billion	$2.88	7.68

Pinterest has higher revenue and earnings than MongoDB. MongoDB is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for MongoDB and Pinterest, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MongoDB	1	9	27	2	2.77
Pinterest	1	9	20	1	2.68

MongoDB presently has a consensus price target of $422.29, indicating a potential upside of 13.72%. Pinterest has a consensus price target of $38.00, indicating a potential upside of 71.85%. Given Pinterest’s higher probable upside, analysts clearly believe Pinterest is more favorable than MongoDB.

Profitability

This table compares MongoDB and Pinterest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MongoDB	-3.06%	-1.12%	-0.92%
Pinterest	48.99%	8.20%	7.26%

Volatility and Risk

MongoDB has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Pinterest has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Institutional and Insider Ownership

89.3% of MongoDB shares are held by institutional investors. Comparatively, 88.8% of Pinterest shares are held by institutional investors. 3.1% of MongoDB shares are held by company insiders. Comparatively, 7.1% of Pinterest shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Pinterest beats MongoDB on 9 of the 15 factors compared between the two stocks.

About MongoDB

MongoDB, Inc., together with its subsidiaries, provides general purpose database platform worldwide. The company provides MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premises, or in a hybrid environment; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB. It offers professional services comprising consulting and training. The company was formerly known as 10gen, Inc. and changed its name to MongoDB, Inc. in August 2013. MongoDB, Inc. was incorporated in 2007 and is headquartered in New York, New York.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.