Critical Review: Chineseinvestors.Com (OTCMKTS:CIIX) versus GigaMedia (NASDAQ:GIGM)

Chineseinvestors.Com (OTCMKTS:CIIX) and GigaMedia (NASDAQ:GIGM) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Chineseinvestors.Com and GigaMedia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chineseinvestors.Com	0	0	0	0	0.00
GigaMedia	1	0	0	0	1.00

Given Chineseinvestors.Com’s higher probable upside, analysts plainly believe Chineseinvestors.Com is more favorable than GigaMedia.

Institutional & Insider Ownership

13.5% of GigaMedia shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Chineseinvestors.Com and GigaMedia”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chineseinvestors.Com	N/A	N/A	N/A	N/A	N/A
GigaMedia	$2.97 million	5.43	-$2.30 million	($0.11)	-13.27

Chineseinvestors.Com has higher earnings, but lower revenue than GigaMedia.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chineseinvestors.Com	N/A	N/A	N/A
GigaMedia	-37.82%	-3.25%	-3.08%

About Chineseinvestors.Com

Chineseinvestors.com, Inc. engages in the provision of Chinese language web-based real-time financial information. Its services include real-time market commentary, analysis, and educational-related services in Chinese language character sets, support services, consultancy services to smaller private companies considering becoming a public company, and advertising and public relation-related support services. The company was founded by Wei Wang on January 6, 1997 and is headquartered in San Gabriel, CA.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.