Reviewing Sohu.com (NASDAQ:SOHU) and PCCW (OTCMKTS:PCWLF)

PCCW (OTCMKTS:PCWLF) and Sohu.com (NASDAQ:SOHU) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Institutional & Insider Ownership

33.0% of Sohu.com shares are owned by institutional investors. 1.0% of PCCW shares are owned by company insiders. Comparatively, 21.1% of Sohu.com 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for PCCW and Sohu.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PCCW	0	0	0	0	0.00
Sohu.com	0	1	2	0	2.67

Sohu.com has a consensus target price of $20.00, indicating a potential upside of 25.63%. Given Sohu.com’s stronger consensus rating and higher possible upside, analysts plainly believe Sohu.com is more favorable than PCCW.

Profitability

This table compares PCCW and Sohu.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PCCW	N/A	N/A	N/A
Sohu.com	25.92%	-4.20%	-2.55%

Risk & Volatility

PCCW has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Sohu.com has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Valuation and Earnings

This table compares PCCW and Sohu.com”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PCCW	N/A	N/A	N/A	N/A	N/A
Sohu.com	$598.40 million	0.80	-$100.27 million	$5.01	3.18

PCCW has higher earnings, but lower revenue than Sohu.com.

Summary

Sohu.com beats PCCW on 8 of the 10 factors compared between the two stocks.

About PCCW

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. The company’s services include local telephony, local data and broadband, mobile, enterprise solutions, international telecommunications, and satellite-based and network-based telecommunications services; outsourcing, consulting, and contact center services; and technical consulting and engineering services. It also provides free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; sells mobile handsets and accessories; distributes media content; and mobile video on demand and advertising services through OTT platform. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and media content services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; provision of data services; software development, systems integration, consulting, and informatization activities; the provision of computer and IP/IT related value-added services to business customers; operates customer loyalty program and online merchandise sales; and content production, talent management, and entertainment business. Additionally, the company offers e-commerce, travel, insurance, big data analytics, fintech, and health-tech services. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.

About Sohu.com

Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.