58.com (NYSE: WUBA) is one of 51 public companies in the “Internet Services” industry, but how does it contrast to its competitors? We will compare 58.com to similar businesses based on the strength of its valuation, institutional ownership, analyst recommendations, dividends, risk, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for 58.com and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
58.com 3 4 6 0 2.23
58.com Competitors 406 1584 2666 89 2.51

58.com currently has a consensus target price of $53.10, indicating a potential downside of 20.95%. As a group, “Internet Services” companies have a potential upside of 1.62%. Given 58.com’s competitors stronger consensus rating and higher possible upside, analysts plainly believe 58.com has less favorable growth aspects than its competitors.

Profitability

This table compares 58.com and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
58.com 2.14% 1.04% 0.72%
58.com Competitors 0.48% 26.73% 6.26%

Insider and Institutional Ownership

61.2% of 58.com shares are held by institutional investors. Comparatively, 62.7% of shares of all “Internet Services” companies are held by institutional investors. 11.9% of 58.com shares are held by company insiders. Comparatively, 22.2% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

58.com has a beta of 2.15, meaning that its stock price is 115% more volatile than the S&P 500. Comparatively, 58.com’s competitors have a beta of 1.31, meaning that their average stock price is 31% more volatile than the S&P 500.

Earnings and Valuation

This table compares 58.com and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
58.com $1.33 billion $230.09 million 395.12
58.com Competitors $946.15 million $117.75 million 46.26

58.com has higher revenue and earnings than its competitors. 58.com is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

58.com competitors beat 58.com on 8 of the 13 factors compared.

58.com Company Profile

58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.

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