GigaMedia (NASDAQ:GIGM) and Weibo (NASDAQ:WB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Insider and Institutional Ownership

26.2% of Weibo shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for GigaMedia and Weibo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GigaMedia 0 0 0 0 N/A
Weibo 1 9 5 0 2.27

Weibo has a consensus price target of $59.94, suggesting a potential upside of 39.76%. Given Weibo’s higher probable upside, analysts plainly believe Weibo is more favorable than GigaMedia.

Profitability

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

Net Margins Return on Equity Return on Assets
GigaMedia -44.71% -4.59% -4.28%
Weibo 35.25% 37.16% 19.50%

Earnings & Valuation

This table compares GigaMedia and Weibo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GigaMedia $7.10 million 3.66 -$3.19 million N/A N/A
Weibo $1.72 billion 5.56 $571.82 million $2.52 17.02

Weibo has higher revenue and earnings than GigaMedia.

Risk and Volatility

GigaMedia has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Weibo has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500.

Summary

Weibo beats GigaMedia on 10 of the 11 factors compared between the two stocks.

About GigaMedia

GigaMedia Limited provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company offers mobile and browser-based casual games through FunTown-branded platform. Its portfolio of PC-based casual games include MahJong, a traditional Chinese tile game; sports games, Web-based RPG, and mobile games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. The company also provides Tales Runner, a multi-player online obstacle running game in which players competes by running, jumping, dashing and using items. In addition, it owns and operates GigaCloud, a provider of cloud computing solutions and related services focused on the cloud services market for SMEs in Taiwan. GigaMedia Limited was founded in 1997 and is headquartered in Taipei, Taiwan.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates in two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted feeds, accounts, and trends and search products that enable its customers to promote their brands and conduct marketing activities. In addition, the company offers copyright content, such as TV channels, online video Websites, and operators with copyright content through traffic resource exchange and content traffic sharing; MCNs and other self-media to manage and provide services to content creators on Weibo, such as MCNs, unions, and e-commerce partners; other app developers an application platform, which allows users to log into third-party applications; and Weibo Wallet product that enables platform partners to conduct interest generation activities on Weibo. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation is a subsidiary of Sina Corporation.

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