Critical Comparison: Sina Corporation (SINA) and LinkedIn Corp (LNKD)
Sina Corporation (NASDAQ: SINA) and LinkedIn Corp (NYSE:LNKD) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
This is a summary of current recommendations for Sina Corporation and LinkedIn Corp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sina Corporation presently has a consensus price target of $104.08, indicating a potential downside of 9.22%. LinkedIn Corp has a consensus price target of $208.00, indicating a potential upside of 6.14%. Given LinkedIn Corp’s higher possible upside, analysts clearly believe LinkedIn Corp is more favorable than Sina Corporation.
Institutional & Insider Ownership
67.0% of Sina Corporation shares are owned by institutional investors. Comparatively, 64.0% of LinkedIn Corp shares are owned by institutional investors. 7.4% of Sina Corporation shares are owned by company insiders. Comparatively, 12.7% of LinkedIn Corp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Sina Corporation has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, LinkedIn Corp has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.
This table compares Sina Corporation and LinkedIn Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Sina Corporation and LinkedIn Corp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sina Corporation||$1.23 billion||6.64||$265.15 million||$3.00||38.22|
Sina Corporation has higher revenue and earnings than LinkedIn Corp. LinkedIn Corp is trading at a lower price-to-earnings ratio than Sina Corporation, indicating that it is currently the more affordable of the two stocks.
Sina Corporation beats LinkedIn Corp on 8 of the 11 factors compared between the two stocks.
About Sina Corporation
Sina Corporation is an online media company serving China and the global Chinese communities. The Company’s digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile applications) and Weibo (social media) enables Internet users to access professional media and user generated content (UGCs) in multi-media formats from personal computers and mobile devices, and share their interests with friends and acquaintances. The Company’s segments include Portal advertising, Weibo Corporation (Weibo) and Others. SINA.com is an online media property, which provides professional digital contents to users and offers online brand advertising and marketing solutions to customers. Weibo is a social media platform for people to create, distribute and discover Chinese-language content. It offers eReading, a shop for book reviews, as well as complimentary and fee-based online book reading. It offers SINA Blog, a Website in China for bloggers to publish and read original writings.
About LinkedIn Corp
LinkedIn Corporation (LinkedIn) is a professional network on the Internet with approximately 400 million members in over 200 countries and territories. The Company provides the majority of its products at no cost to its members. It offers approximately three product lines: Talent Solutions, which includes Hiring, and Learning and Development; Marketing Solutions and Premium Subscriptions. Its products are sold through approximately two channels, an offline field sales organization, which engages with both large and small enterprise customers, as well as an online, self-serve channel, which includes enterprise customers and individual members purchasing subscriptions. Its solutions include Free Solutions and Monetized Solutions. Its Free Solutions include Stay Connected and Informed, and Advance My Career. The Company’s Monetized Solutions include Talent Solutions, which includes Hiring, and Learning and Development, Marketing Solutions and Premium Subscriptions.
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