Analyzing WiMi Hologram Cloud (NASDAQ:WIMI) & Weibo (NASDAQ:WB)

Weibo (NASDAQ:WB) and WiMi Hologram Cloud (NASDAQ:WIMI) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Valuation and Earnings

This table compares Weibo and WiMi Hologram Cloud”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weibo	$1.74 billion	1.38	$300.80 million	$1.76	5.60
WiMi Hologram Cloud	$75.39 million	0.38	$9.97 million	N/A	N/A

Weibo has higher revenue and earnings than WiMi Hologram Cloud.

Risk & Volatility

Weibo has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, WiMi Hologram Cloud has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Insider & Institutional Ownership

68.8% of Weibo shares are owned by institutional investors. Comparatively, 1.0% of WiMi Hologram Cloud shares are owned by institutional investors. 41.3% of Weibo shares are owned by insiders. Comparatively, 35.6% of WiMi Hologram Cloud shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Weibo and WiMi Hologram Cloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weibo	21.10%	12.65%	6.87%
WiMi Hologram Cloud	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Weibo and WiMi Hologram Cloud, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weibo	0	1	1	0	2.50
WiMi Hologram Cloud	1	0	0	0	1.00

Weibo currently has a consensus price target of $14.00, suggesting a potential upside of 41.99%. Given Weibo’s stronger consensus rating and higher probable upside, equities analysts clearly believe Weibo is more favorable than WiMi Hologram Cloud.

Summary

Weibo beats WiMi Hologram Cloud on 11 of the 12 factors compared between the two stocks.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user’s trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product services for better displaying and promotion of its account and content; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. 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, the People’s Republic of China.

About WiMi Hologram Cloud

WiMi Hologram Cloud Inc. provides augmented reality (AR) based holographic services and products in China. It operates in three segments: AR Advertising Services, AR Entertainment, and Semiconductor Related Products and Services. The company primarily offers holographic AR advertising services and holographic AR entertainment products. Its holographic AR advertising software enables users to insert into video footages real or animated three-dimensional objects; and online holographic AR advertising solution embeds holographic AR ads into films and shows. The company's holographic AR entertainment products consist primarily of payment middleware software, game distribution platform, and holographic mixed reality software. In addition, it engages in the provision of central processing algorithm services, and provides computer chip products to enterprise customers, as well as sells comprehensive solutions for central processing algorithms and related services with software and hardware integration. Further, the company's holographic AR technologies are used in software engineering, content production, cloud, big data, and artificial intelligence. Additionally, it provides hardware performance optimization and software algorithm optimization services to online game developers and game distributors. The company serves a range of industries, including manufacturing, real estate, entertainment, technology, media and telecommunications, travel, education, and retail. WiMi Hologram Cloud Inc. was founded in 2015 and is headquartered in Beijing, the People's Republic of China.