Vivid Seats (NASDAQ:SEAT) versus NerdWallet (NASDAQ:NRDS) Financial Survey

NerdWallet (NASDAQ:NRDS) and Vivid Seats (NASDAQ:SEAT) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings & Valuation

This table compares NerdWallet and Vivid Seats”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NerdWallet	$836.60 million	0.67	$48.70 million	$0.89	9.87
Vivid Seats	$570.78 million	0.08	-$429.30 million	($45.51)	-0.08

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

Profitability

This table compares NerdWallet and Vivid Seats’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NerdWallet	7.56%	18.07%	14.41%
Vivid Seats	-60.26%	-211.26%	0.91%

Volatility and Risk

NerdWallet has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Vivid Seats has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for NerdWallet and Vivid Seats, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NerdWallet	1	3	4	0	2.38
Vivid Seats	2	6	2	0	2.00

NerdWallet currently has a consensus target price of $12.83, suggesting a potential upside of 46.17%. Vivid Seats has a consensus target price of $10.27, suggesting a potential upside of 165.98%. Given Vivid Seats’ higher possible upside, analysts clearly believe Vivid Seats is more favorable than NerdWallet.

Institutional and Insider Ownership

38.8% of NerdWallet shares are held by institutional investors. Comparatively, 39.9% of Vivid Seats shares are held by institutional investors. 52.7% of NerdWallet shares are held by company insiders. Comparatively, 60.5% of Vivid Seats shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

NerdWallet beats Vivid Seats on 11 of the 14 factors compared between the two stocks.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.

About Vivid Seats

Vivid Seats Inc. operates an online ticket marketplace in the United States, Canada, and Japan. The company operates in two segments, Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers; processes ticket sales on its website and mobile applications through its distribution partners; and sells tickets for sports, concerts, theater events, and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing, and fulfill orders across multiple ticket resale marketplaces; and Vivid Picks daily fantasy sports that allows users to partake in contests by making picks from various sport and player matchups. The Resale segment acquires tickets to resell on secondary ticket marketplaces; and provides internal research and development support for Skybox and to deliver seller software and tools. The company was founded in 2001 and is headquartered in Chicago, Illinois.