Analyzing CyberAgent (OTCMKTS:CYAGF) and KE (NYSE:BEKE)

KE (NYSE:BEKE) and CyberAgent (OTCMKTS:CYAGF) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Volatility and Risk

KE has a beta of -0.65, indicating that its share price is 165% less volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KE	$12.80 billion	1.44	$556.89 million	$0.42	38.61
CyberAgent	$5.86 billion	0.75	$212.17 million	$0.40	21.75

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

Analyst Ratings

This is a summary of recent recommendations for KE and CyberAgent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KE	0	2	5	0	2.71
CyberAgent	0	1	0	0	2.00

KE currently has a consensus target price of $23.30, suggesting a potential upside of 43.69%. Given KE’s stronger consensus rating and higher probable upside, equities research analysts clearly believe KE is more favorable than CyberAgent.

Insider & Institutional Ownership

39.3% of KE shares are owned by institutional investors. 6.8% of KE shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares KE and CyberAgent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KE	3.37%	5.47%	2.99%
CyberAgent	3.62%	14.04%	7.00%

Summary

KE beats CyberAgent on 10 of the 14 factors compared between the two stocks.

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.