Financial Comparison: Internap (INAP) and Baidu (BIDU)

Internap (NASDAQ: INAP) and Baidu (NASDAQ:BIDU) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Insider and Institutional Ownership

80.8% of Internap shares are owned by institutional investors. Comparatively, 60.7% of Baidu shares are owned by institutional investors. 5.9% of Internap shares are owned by company insiders. Comparatively, 16.7% of Baidu shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Internap and Baidu, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internap 0 0 1 2 3.67
Baidu 0 7 14 1 2.73

Internap presently has a consensus price target of $28.00, indicating a potential upside of 117.39%. Baidu has a consensus price target of $281.07, indicating a potential upside of 8.17%. Given Internap’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Internap is more favorable than Baidu.

Earnings & Valuation

This table compares Internap and Baidu’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Internap $280.72 million 0.97 -$45.34 million ($1.55) -8.31
Baidu $13.03 billion 6.91 $2.81 billion $8.06 32.24

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

Risk & Volatility

Internap has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, Baidu has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

Profitability

This table compares Internap and Baidu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Internap -18.10% -665.82% -6.23%
Baidu 26.48% 19.87% 9.16%

Summary

Baidu beats Internap on 10 of the 15 factors compared between the two stocks.

About Internap

Internap Corporation provides Internet infrastructure services. It operates through two business segments, INAP COLO and INAP CLOUD. The INAP COLO segment offers colocation services, including physical space within data centers and related services, such as power, interconnection, environmental controls, monitoring, and security; and Internet protocol (IP) connectivity services comprising its patented Performance IP and content delivery network services, IP routing hardware and software platforms, and Managed Internet Route Optimizer controllers. This segment offers its colocation services through 56 data centers and 97 POPs worldwide. The INAP CLOUD segment provides hosted Infrastructure-as-a-Service as a cloud platform or through managed hosting that includes the provision and maintenance of hardware, data center infrastructure, and interconnection that enables its customers to own and manage their software applications and content. This segment offers cloud and managed hosting services, which comprise compute and storage services, as well as a single tenant infrastructure environment through an integrated platform that includes servers, storage, and network. The company serves various industries, including healthcare; advertising technology; financial; technology infrastructure; and gaming and software. The company was formerly known as Internap Network Services Corporation and changed its name to Internap Corporation in November 2014. Internap Corporation was founded in 1996 and is headquartered in Atlanta, Georgia.

About Baidu

Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI. The Baidu Core segment offers products for uses, including Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services through mobile browsers; Baidu Feed that provides users with personalized timeline to meet their personal interests reflected in their past online behaviors, such as search and browsing, and their demographics; and Bear Paw Account that enables verified brands and businesses to aggregate their content from Websites, wapsites, and open-platform apps. It also provides Baijiahao, a publisher platform for content providers; Baidu Post Bar, a social media platform; Haokan Videos, an online short-form video aggregation platform; Baidu Knows, a knowledge sharing platform; Baidu Encyclopedia; Baidu Education, an online educational resources platform; Baidu Mobile Assistant, a mobile app marketplace; Baidu Mobile Guardian, a phone security software; DuerOS, a conversational artificial intelligence platform; Baidu Wallet, an online and mobile payment service; Baidu Consumer Credit, an installment payment service; Baidu Wealth Management, a wealth management service; Baidu Maps that offers services relating to locations and intelligent routing and navigation; Baidu Cloud Drive, a personal cloud service platform; and various mobile products and services. In addition, this segment offers online marketing services based on search queries, contextuals, audience attributes, media and placement attributes, as well as Baidu Feed; Baidu Cloud, a public cloud computing platform; and Apollo, an open source autonomous driving platform. The iQIYI segment provides Internet video streaming services. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, China.

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