Line (NYSE:LN) and Weibo (NYSE:WB) Head to Head Review

Line (NYSE:LN) and Weibo (NASDAQ:WB) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Line $2.12 billion 5.64 -$431.37 million ($1.82) -27.24
Weibo $1.77 billion 3.81 $494.67 million $2.18 13.71

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

Risk & Volatility

Line has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Weibo has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Institutional & Insider Ownership

1.7% of Line shares are held by institutional investors. Comparatively, 26.2% of Weibo shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Line and Weibo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Line -19.23% -26.60% -8.83%
Weibo 23.44% 18.49% 9.09%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Line and Weibo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Line 0 3 0 0 2.00
Weibo 1 6 2 0 2.11

Weibo has a consensus price target of $45.38, indicating a potential upside of 51.86%. Given Weibo’s stronger consensus rating and higher probable upside, analysts clearly believe Weibo is more favorable than Line.

Summary

Weibo beats Line on 11 of the 13 factors compared between the two stocks.

Line Company Profile

LINE Corporation provides a platform for mobile messaging and communication services, content distribution, and life and financial services primarily in Japan, Taiwan, Thailand, and Indonesia. It operates through two segments, Core Business and Strategic Business. The company offers LINE, a cross-platform messenger application that enables users to communicate through free instant messaging, stickers, and voice and video calls, as well as serves as a smart portal to its other applications and services. It also provides communication products, including LINE Stickers and themes; and contents, such as LINE Games, LINE PLAY, LINE Manga, LINE Music, and LINE Fortune. In addition, the company offers display advertising services through Timeline, LINE NEWS, and LINE TODAY; account advertising products and services comprising official accounts, [email protected], sponsored stickers, and LINE Point Ads; and other advertising products and services that include LINE Part-time Job, livedoor, and Matome Web portals. Further, it sells LINE characters merchandise under the LINE Friends name; and provides fintech services, such as LINE Pay service, as well as other services that include AI and e-commerce. The company was formerly known as NHN Japan Corporation and changed its name to LINE Corporation in April 2013. The company was founded in 2000 and is headquartered in Tokyo, Japan. LINE Corporation is a subsidiary of Naver Corporation.

Weibo Company Profile

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates in two segments, Advertising and Marketing Services, and Value-Added Services. The company 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; and discovery products to help users discover content on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted feeds, accounts, and trends and search products that enable its customers to promote their brands and conduct marketing activities. In addition, the company offers copyright content, such as TV channels, online video Websites, and operators with copyright content through traffic resource exchange and content traffic sharing; MCNs and other self-media to manage and provide services to content creators on Weibo, such as MCNs, unions, and e-commerce partners; other app developers an application platform, which allows users to log into third-party applications; and Weibo Wallet product that enables platform partners to conduct interest generation activities on Weibo. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation is a subsidiary of Sina Corporation.

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