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Four household names that will be smaller than Snapchat

By: Kapitall
Posted: 7/31/2014 10:39:00 AM
Referenced Stocks:

By James Dennin for Kapitall. 

Snapchat is reportedly getting pretty close to closing on a new round of funding, sources close to the matter now say. Even the Chinese e-commerce giant Alibaba is rumored to be interested in getting a piece. 

That's pretty impressive for a company founded by frat boys, who prompted lots of snickers when they turned down a $3 billion  offer from Facebook ( FB ) last summer. 

The new funding would put the company at a $10 billion valuation. That's billion with a 'b' for a company that has yet to make a cent in profit. 

To give you some context, that's pretty similar to the valuations assigned to Airbnb and Dropbox, both of which have more developed business models. It would also make Snapchat one of the most valuable startups in the world. 

That got us curious for some context. So I rounded up four household names that would officially be less valuable than Snapchat if the money comes through. 

Do you think $10 billion is fair? Use the list below to begin your analysis, and let us know what you think in the comments. 

Click on the interactive chart to view data over time. 

1. Hanesbrands Inc. ( HBI , Earnings , Analysts , Financials ): Engages in the design, manufacture, sourcing, and sale of apparel essentials in the United States and internationally. Market cap at $9.97B, most recent closing price at $100.08.

Hanes expects to make around $600 million this year off $5 billion in sales. It is worth less than Snapchat. 

2. Coach, Inc. ( COH , Earnings , Analysts , Financials ): Engages in the design and marketing of accessories and gifts for men and women in the United States and internationally. Market cap at $9.49B, most recent closing price at $34.63.

Coach sells handbags for as much as $20K. But it would still be worth less than Snapchat. 

3. Burger King Worldwide, Inc. ( BKW , Earnings , Analysts , Financials ): Together with its subsidiaries, operates and franchises fast food hamburger restaurants under the Burger King brand name. Market cap at $9.36B, most recent closing price at $26.59.

Burger King sells about a half a million burgers a day. That won't stop it from being surpassed by Snapchat. 

4. Church & Dwight Co. Inc. ( CHD , Earnings , Analysts , Financials ): Develops, manufactures, and markets a range of household, personal care, and specialty products under various brand names in the United States and internationally. Market cap at $8.99B, most recent closing price at $66.18.

Trojan  dominates the condom market in the US with a 70% market share. Soon, however, Snapchat will be bigger than it. 

(List compiled by James Dennin. Monthly returns sourced from Zacks Investment Research.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.