58.com (NYSE: WUBA) is one of 52 publicly-traded companies in the “Internet Services” industry, but how does it weigh in compared to its competitors? We will compare 58.com to similar businesses based on the strength of its valuation, risk, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares 58.com and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
58.com 2.14% 1.04% 0.72%
58.com Competitors -0.25% 26.46% 6.10%

Risk and Volatility

58.com has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500. Comparatively, 58.com’s competitors have a beta of 1.32, suggesting that their average share price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for 58.com and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
58.com 3 4 6 0 2.23
58.com Competitors 406 1593 2673 89 2.51

58.com presently has a consensus target price of $53.10, suggesting a potential downside of 22.24%. As a group, “Internet Services” companies have a potential upside of 1.77%. Given 58.com’s competitors stronger consensus rating and higher possible upside, analysts clearly believe 58.com has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares 58.com and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
58.com $1.14 billion -$110.71 million 401.71
58.com Competitors $1.03 billion $121.10 million 480.90

58.com has higher revenue, but lower earnings than its competitors. 58.com is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

61.2% of 58.com shares are owned by institutional investors. Comparatively, 62.7% of shares of all “Internet Services” companies are owned by institutional investors. 11.9% of 58.com shares are owned by insiders. Comparatively, 22.2% of shares of all “Internet Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

58.com competitors beat 58.com on 10 of the 13 factors compared.

About 58.com

58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.

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