Critical Comparison: System1 (NYSE:SST) vs. China Networks International (OTCMKTS:CNWHF)

System1 (NYSE:SST) and China Networks International (OTCMKTS:CNWHF) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for System1 and China Networks International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
System1	1	0	1	0	2.00
China Networks International	0	0	0	0	0.00

System1 presently has a consensus target price of $10.00, indicating a potential upside of 63.56%. Given System1’s stronger consensus rating and higher probable upside, equities research analysts clearly believe System1 is more favorable than China Networks International.

Earnings and Valuation

This table compares System1 and China Networks International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
System1	$343.92 million	0.18	-$74.67 million	($9.63)	-0.63
China Networks International	N/A	N/A	N/A	N/A	N/A

China Networks International has lower revenue, but higher earnings than System1.

Insider & Institutional Ownership

87.5% of System1 shares are owned by institutional investors. 13.2% of System1 shares are owned by insiders. Comparatively, 1.4% of China Networks International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares System1 and China Networks International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
System1	-22.43%	-92.07%	-15.92%
China Networks International	N/A	N/A	N/A

Summary

System1 beats China Networks International on 6 of the 9 factors compared between the two stocks.

About System1

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.

About China Networks International

China Networks International Holdings, Ltd. does not have significant operations. Previously, it provided broadcast television advertising services in the People’s Republic of China. The company was founded in 2007 and is based in Beijing, the People’s Republic of China.