Autohome (NYSE:ATHM) versus AMEN Properties (OTCMKTS:AMEN) Critical Review

AMEN Properties (OTCMKTS:AMEN) and Autohome (NYSE:ATHM) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Valuation and Earnings

This table compares AMEN Properties and Autohome”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMEN Properties	$2.35 million	13.00	$1.70 million	$5.28	109.15
Autohome	$922.63 million	2.85	$225.19 million	$1.16	19.70

Autohome has higher revenue and earnings than AMEN Properties. Autohome is trading at a lower price-to-earnings ratio than AMEN Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for AMEN Properties and Autohome, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMEN Properties	0	0	0	0	0.00
Autohome	2	4	0	0	1.67

Autohome has a consensus target price of $17.77, suggesting a potential downside of 22.25%. Given Autohome’s stronger consensus rating and higher possible upside, analysts clearly believe Autohome is more favorable than AMEN Properties.

Dividends

AMEN Properties pays an annual dividend of $50.00 per share and has a dividend yield of 8.7%. Autohome pays an annual dividend of $2.41 per share and has a dividend yield of 10.5%. AMEN Properties pays out 947.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Autohome pays out 207.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Autohome is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

63.1% of Autohome shares are owned by institutional investors. 30.3% of AMEN Properties shares are owned by insiders. Comparatively, 5.7% of Autohome shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

AMEN Properties has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Autohome has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Profitability

This table compares AMEN Properties and Autohome’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMEN Properties	182.84%	30.63%	26.22%
Autohome	17.05%	4.44%	3.53%

Summary

AMEN Properties beats Autohome on 8 of the 15 factors compared between the two stocks.

About AMEN Properties

AMEN Properties, Inc. owns oil and gas royalty and working interests in various oil and gas properties in the United States. It holds interests in oil gas and gas royalties through its ownership of SFF Royalty, LLC; and 100% interests in SFF Production, LLC. The company was formerly known as Crosswalk.com, Inc. and changed its name to AMEN Properties, Inc. in October 2002. AMEN Properties, Inc. was incorporated in 1993 and is based in Richardson, Texas.

About Autohome

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company offers Autohome Mall, an online transaction platform; and online bidding platform for used automobiles, as well as collects commissions for facilitating transactions of auto-financing and insurance products on its platform. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the People’s Republic of China.