Yelp Inc. (YELP) vs. Match Group (MTCH): Which Internet Content Stock Is a Better Buy?

The internet industry is thriving due to growing demand for digital platforms and increasing digital transformation across industries. Amid this, let’s compare internet stocks Yelp (YELP) and Match Group. (MTCH) to analyze which internet content stock could be a better buy. Read on to find out…

The rapid digital transformation of businesses across nearly all global industries is fueling significant expansion in the internet services market. Key factors contributing to this growth include the surge in e-commerce, the digitization of healthcare, increasing consumption of online entertainment, and government initiatives in e-governance.

An increasing number of people around the world are getting connected to the internet. According to Statista, as of July 2024, there were 5.45 billion internet users, which accounted for 67.1% of the global population. Moreover, there are a few emerging nations that could add to the internet population significantly.

Against this backdrop, let’s compare two internet stocks to analyze which internet content stock is a better buy: Yelp Inc. (YELP) and Match Group, Inc. (MTCH).

The Case for Yelp Inc. Stock

With a $2.3 billion market cap, Yelp Inc. (YELP) operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services.

On July 23, 2024, YELP announced its Summer Ad Product Release to deliver more value to service businesses and national advertisers with a series of new features and updates.

The company rolled out features and updates for multi-location service businesses to help them seamlessly generate and manage high-intent leads, including Request a Quote for Brands with a new Leads API, and extended YELP Guaranteed, Verified License, and Portfolio to national services businesses.

YELP’s stock has plunged 19.6% over the past year to close the last trading session at $33.82.

YELP’s forward EV/EBITDA of 5.88x is 25.4% lower than the industry average of 7.89x. Its forward EV/Sales multiple of 1.37 is 28.3% lower than the industry average of 1.91.

For the fiscal second quarter that ended June 30, 2024, YELP’s net revenue grew 5.9% year-over-year to $357.02 million. YELP’s net income attributable to common stockholders stood at $38.04 million or $0.54 per share, up 158.2% and 157.1% year-over-year, respectively.

Analysts expect YELP’s revenue for the third quarter (ending September 2024) to increase 4.5% year-over-year to $360.54 million. Likewise, its EPS for the same quarter is projected to be $0.84. Moreover, the company has topped consensus estimates in each of the trailing four quarters, which is excellent.

YELP’s POWR Ratings reflect its promising outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

The stock has an A grade for Value and Quality. YELP is ranked #3 out of 51 stocks in the B-rated Internet industry.

In addition to the POWR Ratings I’ve just highlighted, you can see YELP’s ratings for Growth, Momentum, Sentiment, and Stability here.

The Case for Match Group, Inc. Stock

Valued at $9.08 billion by market cap, Match Group, Inc. (MTCH) engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty of Fish, Azar, BLK, and Hakuna, as well as various other brands, each built to increase users' likelihood of connecting with others.

MTCH’s stock has gained 2.3% over the past month to close the last trading session at $35.19.

MTCH’s forward EV/EBIT of 14.49x is 3.9% lower than the industry average of 15.08x. However, its forward EV/Sales of 3.45x is 80.7% higher than the industry average of 1.91x.

MTCH’s revenue for the fiscal second quarter ended June 30, 2024, increased 4.2% year-over-year to $864.07 million. In contrast, its net earnings decreased 2.9% year-over-year to $133.32 million. Additionally, the company’s net earnings per share attributable to MTCH remained flat at $0.48.

Analysts expect MTCH’s EPS for the quarter ending September 2024 to increase 4.4% year-over-year to $0.78, while its revenue for the same quarter is expected to increase 2.3% year-over-year to $901.88 million. It surpassed Street revenue estimates in each of the trailing quarters.

MTCH’s mixed fundamentals are reflected in its POWR Ratings. The stock has an overall C rating, translating to Neutral in our proprietary rating system.

MTCH has a C grade for Stability and Momentum. It is ranked #30 among 51 stocks in the same industry.

Click here for the additional POWR Ratings for MTCH (Quality, Value, Sentiment, and Growth).

Yelp Inc. (YELP) vs. Match Group (MTCH): Which Internet Content Stock Is a Better Buy?

The global market for internet services has grown dramatically as a result of the growing adoption of digital technologies such as AI, IoT, cloud computing, data analytics, and social media across a variety of industry verticals. 

Leading internet companies YELP and MTCH stand to capitalize on the optimistic industry outlook. However, YELP’s strong financial performance, cheap valuation and promising near-term outlook favor it as the better internet content stock pick.

Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Internet industry here.

What To Do Next?

43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.

2024 Stock Market Outlook >


MTCH shares were trading at $36.56 per share on Monday afternoon, up $1.37 (+3.89%). Year-to-date, MTCH has gained 0.16%, versus a 18.09% rise in the benchmark S&P 500 index during the same period.



About the Author: Nidhi Agarwal

Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.

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