Leaf Group (NYSE: LFGR) and 58.com (NYSE:WUBA) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Volatility and Risk
Leaf Group has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, 58.com has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500.
This is a breakdown of current recommendations for Leaf Group and 58.com, as provided by MarketBeat.
||Strong Buy Ratings
Leaf Group currently has a consensus target price of $10.30, indicating a potential upside of 15.73%. 58.com has a consensus target price of $50.63, indicating a potential downside of 37.21%. Given Leaf Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Leaf Group is more favorable than 58.com.
Institutional and Insider Ownership
63.4% of Leaf Group shares are held by institutional investors. Comparatively, 60.9% of 58.com shares are held by institutional investors. 47.6% of Leaf Group shares are held by company insiders. Comparatively, 11.9% of 58.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Leaf Group and 58.com’s gross revenue, earnings per share and valuation.
||Earnings Per Share
Leaf Group has higher earnings, but lower revenue than 58.com. Leaf Group is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.
This table compares Leaf Group and 58.com’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
58.com beats Leaf Group on 9 of the 14 factors compared between the two stocks.
About Leaf Group
Leaf Group Ltd., formerly Demand Media, Inc., is diversified Internet marketplaces and media company. The Company has online media properties and marketplace platforms that enable communities of creators to reach audiences in lifestyle categories. The Company operates an online studio platform for the professional creation and distribution of content, as well as two online artist marketplaces. Its business comprises two service offerings: Content & Media and Marketplaces. The Company creates media content, including text articles, videos, photographs and designed visual formats, and publishes such content to its owned and operated online properties and to its customers’ online properties. The Company also offers its content creation and distribution platform to provide custom content and other content marketing solutions to brands, publishers and advertisers.
58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.
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