Head to Head Comparison: Autohome (ATHM) versus Bitauto (NYSE:BITA)

Autohome (NYSE: ATHM) and Bitauto (NYSE:BITA) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

38.8% of Autohome shares are owned by institutional investors. Comparatively, 27.8% of Bitauto shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Autohome and Bitauto’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Autohome $338.13 million 19.43 $176.85 million $2.07 26.86
Bitauto $831.50 million 2.46 -$50.57 million ($2.72) -10.48

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

Profitability

This table compares Autohome and Bitauto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autohome 25.52% 23.48% 16.58%
Bitauto -11.69% -2.10% -0.70%

Analyst Recommendations

This is a breakdown of current recommendations for Autohome and Bitauto, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autohome 0 0 4 0 3.00
Bitauto 0 0 0 0 N/A

Autohome presently has a consensus target price of $72.27, indicating a potential upside of 30.00%. Given Autohome’s higher possible upside, equities analysts clearly believe Autohome is more favorable than Bitauto.

Volatility and Risk

Autohome has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, Bitauto has a beta of 3.03, indicating that its stock price is 203% more volatile than the S&P 500.

Summary

Autohome beats Bitauto on 9 of the 11 factors compared between the two stocks.

About Autohome

Autohome Inc. is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry. The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. The Company’s professionally produced content is created by editorial team and includes automobile-related articles and reviews, pricing trends in various local markets, and photos and video clips. Its database also includes new and used automobile listings and promotional information. Its dealer subscription services allow dealers to market their inventory and services through its Websites.

About Bitauto

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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