APP vs. HUBS: A Head-to-Head Stock Comparison

Company Overview

APP’s market capitalization of 136.00 billion USD is substantially larger than HUBS’s 31.22 billion USD, indicating a significant difference in their market valuations.

With betas of 2.39 for APP and 1.79 for HUBS, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of APP and HUBS over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of APP and HUBS. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• APP’s Price-to-Earnings (P/E) ratio of 71.14 is very high, indicating its stock trades at a significant premium to its earnings, possibly due to strong investor sentiment or high growth expectations. HUBS’s P/E ratio of -1336.69 is negative, signaling it is currently unprofitable.
• APP’s Forward PEG ratio of 2.81 is very high, suggesting its stock might be overvalued if its price has substantially outrun its future earnings growth forecast. HUBS’s Forward PEG ratio of -71.43 is negative, often an indicator of issues such as negative current earnings or anticipated earnings contraction, which calls its fundamental valuation into question.
• APP’s Price-to-Free-Cash-Flow (P/FCF) ratio of 53.69 and HUBS’s P/FCF ratio of 51.24 are both very high. For APP, this high ratio indicates investors are paying a significant premium for each dollar of its free cash flow, likely driven by expectations of strong future growth or superior cash flow quality. HUBS’s very high P/FCF also suggests a rich market valuation relative to its current free cash flow, possibly reflecting optimism about its long-term prospects or industry leadership.

Dividend Comparison

Neither APP nor HUBS currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

Financial Strength Metrics Comparison

This section evaluates the financial strength of APP and HUBS. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• APP’s Debt-to-Equity (D/E) ratio of 6.45 is very high. This indicates that the company is significantly financed by debt, which can amplify returns but also substantially increases its financial risk profile and vulnerability to earnings fluctuations.
• HUBS’s Interest Coverage Ratio (ICR) of -33.04 is negative. This signals that its current operating earnings are insufficient to meet its interest obligations, a critical red flag for its financial health and capacity to manage its debt.