Taoping (NASDAQ:TAOP) versus GigaMedia (NASDAQ:GIGM) Critical Analysis

Taoping (NASDAQ:TAOP) and GigaMedia (NASDAQ:GIGM) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

4.0% of Taoping shares are held by institutional investors. Comparatively, 13.5% of GigaMedia shares are held by institutional investors. 45.4% of Taoping shares are held by company insiders. Comparatively, 1.0% of GigaMedia shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Taoping and GigaMedia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taoping	N/A	N/A	N/A
GigaMedia	-50.86%	-4.52%	-4.24%

Analyst Recommendations

This is a summary of recent ratings and price targets for Taoping and GigaMedia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taoping	1	0	0	0	1.00
GigaMedia	1	0	0	0	1.00

Risk & Volatility

Taoping has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Valuation & Earnings

This table compares Taoping and GigaMedia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taoping	$30.82 million	0.41	-$10.06 million	N/A	N/A
GigaMedia	$3.47 million	4.59	-$1.55 million	($0.15)	-9.60

GigaMedia has lower revenue, but higher earnings than Taoping.

Summary

Taoping beats GigaMedia on 5 of the 9 factors compared between the two stocks.

About Taoping

Taoping Inc. provides cloud-based platform, resource sharing, and big data solutions to the Chinese new media, education residential community management, and elevator Internet of Things (IoT) industries in the People's Republic of China. It operates through Cloud-Based Technology and Traditional Information Technology segments. The company offers cloud-based software as a service to automate the interactive workflows between advertising agencies and their customers, including establishing new advertising projects, submitting advertisement proposals, revising and approving advertising proposals, processing payment online, remotely uploading advertisement content, and tracking and analyzing performance data. It also provides project-based technology products and services for the public sector; and software and hardware with integrated solutions, such as information technology infrastructure, internet-enabled display technologies, and IoT platforms to customers in government, education, residential community management, media, transportation, and other private sectors, as well as related maintenance and support services. In addition, the company offers cloud-application-terminal, IoT technology based digital advertising distribution network, and media resource sharing platform in the out-of-home advertising markets. Further, it operates Taoping Net, an advertising-resources trading service platform, which connect screen owners, advertisers, and consumers; and Taoping App that enable customers to distribute and manage ads from mobile terminals. The company was formerly known as China Information Technology, Inc. and changed its name to Taoping Inc. in June 2018. Taoping Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.