KE (NYSE:BEKE) and United Internet (OTCMKTS:UDIRF) Critical Contrast

KE (NYSE:BEKE) and United Internet (OTCMKTS:UDIRF) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Profitability

This table compares KE and United Internet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KE	3.37%	5.47%	2.99%
United Internet	1.90%	2.19%	1.00%

Risk & Volatility

KE has a beta of -0.64, meaning that its stock price is 164% less volatile than the S&P 500. Comparatively, United Internet has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Institutional & Insider Ownership

39.3% of KE shares are owned by institutional investors. 6.8% of KE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for KE and United Internet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KE	0	3	5	0	2.63
United Internet	1	0	0	0	1.00

KE currently has a consensus price target of $22.69, indicating a potential upside of 23.26%. Given KE’s stronger consensus rating and higher probable upside, equities analysts clearly believe KE is more favorable than United Internet.

Earnings & Valuation

This table compares KE and United Internet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KE	$12.80 billion	1.68	$556.89 million	$0.42	43.82
United Internet	$6.85 billion	0.77	$114.57 million	$0.74	36.94

KE has higher revenue and earnings than United Internet. United Internet is trading at a lower price-to-earnings ratio than KE, indicating that it is currently the more affordable of the two stocks.

Summary

KE beats United Internet on 12 of the 14 factors compared between the two stocks.

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

About United Internet

United Internet AG, through its subsidiaries, operates as an Internet service provider worldwide. The company operates through Consumer Access, Business Access, Consumer Applications, and Business Applications segments. It offers landline-based broadband and mobile internet products, including home networks, online storage, telephony, and IPTV for private users; and telecommunication products ranging from fiber-optic direct connections to tailored ICT solutions, which include voice, data, and network solutions, as well as infrastructure services to national and international carriers and ISPs. The company also provides applications and services for home users, such as personal information management applications comprising email, to-do lists, appointments, and addresses; and online cloud storage, as well as domains and website solutions. In addition, it provides business applications for freelancers and small to medium enterprises, such as domains, websites, web hosting, servers, cloud solutions, e-shops, group work, online cloud storage, and office software. It offers its access products through the yourfone, smartmobile.de, 1&1, and 1&1 Versatel brands; and applications through GMX, mail.com, WEB.DE, home.pl, Arsys, STRATO, IONOS, Fasthosts, we22, InterNetX, united-domains, and World4You brand names. In addition, the company offers customers professional services in the fields of active domain management; performance-based advertising and sales services under the Sedo brand name; online advertising services under the United Internet Media brand name; and white-label website builder services under the we22 brand, as well as sells IT hardware. The company was incorporated in 1988 and is headquartered in Montabaur, Germany.