Bitauto (NYSE: BITA) and Autohome (NYSE:ATHM) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Bitauto and Autohome, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bitauto 0 0 0 0 N/A
Autohome 0 0 4 0 3.00

Autohome has a consensus price target of $72.27, indicating a potential upside of 10.86%. Given Autohome’s higher probable upside, analysts plainly believe Autohome is more favorable than Bitauto.

Profitability

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

Net Margins Return on Equity Return on Assets
Bitauto -11.69% -2.10% -0.70%
Autohome 25.52% 23.48% 16.58%

Risk & Volatility

Bitauto has a beta of 3.18, suggesting that its stock price is 218% more volatile than the S&P 500. Comparatively, Autohome has a beta of 2.12, suggesting that its stock price is 112% more volatile than the S&P 500.

Earnings & Valuation

This table compares Bitauto and Autohome’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Bitauto $831.50 million 2.91 -$50.57 million ($2.31) -14.58
Autohome $338.13 million 22.78 $176.85 million $2.07 31.49

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

Insider & Institutional Ownership

21.8% of Bitauto shares are owned by institutional investors. Comparatively, 40.0% of Autohome shares are owned by institutional investors. 17.0% of Bitauto shares are owned by company insiders. Comparatively, 5.7% of Autohome shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Autohome beats Bitauto on 9 of the 12 factors compared between the two stocks.

About Bitauto

Bitauto Holdings Limited is a provider of Internet content and marketing services for China’s automotive industry. The Company’s bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.

About Autohome

Autohome Inc. is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry. The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. The Company’s professionally produced content is created by editorial team and includes automobile-related articles and reviews, pricing trends in various local markets, and photos and video clips. Its database also includes new and used automobile listings and promotional information. Its dealer subscription services allow dealers to market their inventory and services through its Websites.

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