Head-To-Head Survey: Weibo Corporation (WB) & Bitauto Holdings Limited (BITA)

Weibo Corporation (NASDAQ: WB) and Bitauto Holdings Limited (NYSE:BITA) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Volatility & Risk



Weibo Corporation has a beta of 2.5, indicating that its stock price is 150% more volatile than the S&P 500. Comparatively, Bitauto Holdings Limited has a beta of 3.17, indicating that its stock price is 217% more volatile than the S&P 500.

Valuation and Earnings

This table compares Weibo Corporation and Bitauto Holdings Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Weibo Corporation $655.80 million 35.47 $108.02 million $1.18 89.12
Bitauto Holdings Limited $831.50 million 3.99 -$50.57 million ($1.49) -31.49

Weibo Corporation has higher revenue, but lower earnings than Bitauto Holdings Limited. Bitauto Holdings Limited is trading at a lower price-to-earnings ratio than Weibo Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Weibo Corporation and Bitauto Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weibo Corporation 26.85% 30.00% 20.97%
Bitauto Holdings Limited -2.91% -6.75% -0.72%

Insider & Institutional Ownership

19.7% of Weibo Corporation shares are owned by institutional investors. Comparatively, 19.5% of Bitauto Holdings Limited shares are owned by institutional investors. 17.0% of Bitauto Holdings Limited shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Weibo Corporation and Bitauto Holdings Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weibo Corporation 0 0 7 0 3.00
Bitauto Holdings Limited 0 0 1 0 3.00

Weibo Corporation presently has a consensus price target of $91.00, suggesting a potential downside of 13.47%. Bitauto Holdings Limited has a consensus price target of $33.00, suggesting a potential downside of 29.67%. Given Weibo Corporation’s higher possible upside, research analysts plainly believe Weibo Corporation is more favorable than Bitauto Holdings Limited.

Summary

Weibo Corporation beats Bitauto Holdings Limited on 9 of the 13 factors compared between the two stocks.

Weibo Corporation Company Profile

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

Bitauto Holdings Limited Company Profile

Bitauto Holdings Limited is a provider of Internet content and marketing services for China’s automotive industry. The Company’s bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.

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