Critical Comparison: Youku Tudou (YOKU) vs. Autohome (ATHM)

Autohome (NYSE: ATHM) and Youku Tudou (NYSE:YOKU) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Autohome and Youku Tudou, as provided by MarketBeat.

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

Autohome currently has a consensus target price of $72.27, suggesting a potential upside of 10.86%. Given Autohome’s higher possible upside, research analysts plainly believe Autohome is more favorable than Youku Tudou.

Valuation & Earnings

This table compares Autohome and Youku Tudou’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Autohome $338.13 million 22.78 $176.85 million $2.07 31.49
Youku Tudou N/A N/A N/A ($1.28) -21.52

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

Insider and Institutional Ownership

40.0% of Autohome shares are owned by institutional investors. 5.7% of Autohome shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Autohome and Youku Tudou’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%
Youku Tudou -23.48% -12.96% -9.88%

Volatility and Risk

Autohome has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500. Comparatively, Youku Tudou has a beta of 2.51, meaning that its share price is 151% more volatile than the S&P 500.

Summary

Autohome beats Youku Tudou on 9 of the 10 factors compared between the two stocks.

Autohome Company Profile

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.

Youku Tudou Company Profile

Youku Tudou Inc. is an Internet television company in the People’s Republic of China. The Company’s Youku and Tudou platforms enable users to search, view and share video content across multiple devices. Its monthly visitors from home and office personal computer (PC) users numbered approximately 256 million and 169 million for Youku platform and Tudou platform, respectively. Through its Youku and Tudou platforms, it has built an online video content library. The videos accessible on its two platforms are produced content, such as television serial dramas, movies, variety shows, current events reports and music videos. The remaining content consists of user-generated content and in-house productions. The Company licenses professionally produced video content at fixed rates for a specified term. The terms of its licenses vary depending on the type of content and producer, though the terms for television serial dramas and movies range from six months to ten years.

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