Analyzing Sohu.com (NASDAQ:SOHU) and Metalpha Technology (NASDAQ:MATH)

Sohu.com (NASDAQ:SOHU) and Metalpha Technology (NASDAQ:MATH) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

33.0% of Sohu.com shares are owned by institutional investors. Comparatively, 30.5% of Metalpha Technology shares are owned by institutional investors. 21.1% of Sohu.com shares are owned by company insiders. Comparatively, 5.9% of Metalpha Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Sohu.com and Metalpha Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sohu.com	$584.33 million	0.69	$394.10 million	$14.08	1.10
Metalpha Technology	$44.57 million	1.13	$15.90 million	N/A	N/A

Sohu.com has higher revenue and earnings than Metalpha Technology.

Analyst Ratings

This is a breakdown of recent ratings for Sohu.com and Metalpha Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sohu.com	0	1	2	0	2.67
Metalpha Technology	1	0	0	0	1.00

Sohu.com presently has a consensus price target of $20.00, suggesting a potential upside of 29.03%. Given Sohu.com’s stronger consensus rating and higher probable upside, equities analysts clearly believe Sohu.com is more favorable than Metalpha Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sohu.com	67.44%	20.67%	13.84%
Metalpha Technology	N/A	N/A	N/A

Risk and Volatility

Sohu.com has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Metalpha Technology has a beta of -0.68, meaning that its share price is 168% less volatile than the S&P 500.

Summary

Sohu.com beats Metalpha Technology on 11 of the 12 factors compared between the two stocks.

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.

About Metalpha Technology

Metalpha Technology Holding Limited, together with its subsidiaries, provides wealth management services in Hong Kong. The company offers digital asset-based wealth management services, which include issuing traditional financial and cryptocurrency derivative products to over-the-counter clients, providing crypto derivative market making services, and proprietary trading of digital assets and crypto derivative products; and securities advising and asset management services. It serves institutional investors and high-net-worth individuals. The company was formerly known as Dragon Victory International Limited and changed its name to Metalpha Technology Holding Limited in November 2022. The company was incorporated in 2015 and is headquartered in Wan Chai, Hong Kong.