Financial Analysis: SINA (NASDAQ:SINA) versus Debt Resolve (NASDAQ:DRSV)

SINA (NASDAQ:SINA) and Debt Resolve (OTCMKTS:DRSV) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Profitability

This table compares SINA and Debt Resolve’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SINA -1.00% -0.54% -0.29%
Debt Resolve N/A N/A N/A

Insider & Institutional Ownership

55.2% of SINA shares are owned by institutional investors. 7.4% of SINA shares are owned by insiders. Comparatively, 56.1% of Debt Resolve shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares SINA and Debt Resolve’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SINA $2.16 billion 1.28 -$70.54 million ($1.03) -39.31
Debt Resolve N/A N/A N/A N/A N/A

Debt Resolve has lower revenue, but higher earnings than SINA.

Risk and Volatility

SINA has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Debt Resolve has a beta of 4.87, indicating that its stock price is 387% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for SINA and Debt Resolve, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SINA 0 2 2 0 2.50
Debt Resolve 0 0 0 0 N/A

SINA presently has a consensus target price of $59.00, indicating a potential upside of 45.73%. Given SINA’s higher probable upside, analysts clearly believe SINA is more favorable than Debt Resolve.

Summary

Debt Resolve beats SINA on 5 of the 9 factors compared between the two stocks.

SINA Company Profile

SINA Corporation, through its subsidiaries, operates as an online media company in the People's Republic of China. It operates SINA.com, an online brand advertising portal that provides region-focused format and content, including multimedia news; business news coverage and personal finance columns; sporting events news; automobile-related news; entertainment news and events; technology updates; interactive video products, such as news, sports, and entertainment; and education, digital, fashion, luxury, health, collectibles, travel, and other interest-based channels. The company also offers SINA mobile, a mobile portal, which provides news information and entertainment content from SINA.com for mobile users in mobile browser and application format. In addition, it operates Weibo.com that offers discovery products to help users discover content; self-expression products to enable users to express themselves on Weibo platform; social products to promote social interaction between users on Weibo platform; advertising and marketing solutions; and tools and services. Further, the company offers online payment, online loan facilitation, games, VIP membership, and data licensing services. Additionally, it provides mobile value added services, which allow users to receive news and information, download ring tones, mobile games and pictures, customize caller ring back tones, and participate in dating and friendship communities. SINA Corporation was founded in 1997 and is headquartered in Beijing, the People's Republic of China.

Debt Resolve Company Profile

Debt Resolve, Inc. provides software solutions to consumer lenders or those collecting consumer loans using Software-as-a-Service model in the United States. Its solutions facilitate Web-based payments or the resolution of delinquent or defaulted consumer debt. The company also provides services in the student loan document preparation industry. It serves consumer banks, collection agencies, and the buyers of defaulted debt. The company was formerly known as Lombardia Acquisition Corp. and changed its name to Debt Resolve, Inc. in May 2003. Debt Resolve, Inc. was founded in 1997 and is based in Hawthorne, New York.

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