Qutoutiao (NASDAQ:QTT) and Synacor (NASDAQ:SYNC) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Qutoutiao and Synacor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qutoutiao 0 2 2 0 2.50
Synacor 0 2 0 0 2.00

Qutoutiao presently has a consensus target price of $12.25, suggesting a potential upside of 188.24%. Given Qutoutiao’s stronger consensus rating and higher probable upside, equities analysts clearly believe Qutoutiao is more favorable than Synacor.

Insider & Institutional Ownership

0.4% of Qutoutiao shares are held by institutional investors. Comparatively, 26.5% of Synacor shares are held by institutional investors. 25.3% of Synacor shares are held by 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.

Profitability

This table compares Qutoutiao and Synacor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qutoutiao N/A N/A N/A
Synacor -5.20% -11.02% -6.18%

Earnings & Valuation

This table compares Qutoutiao and Synacor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qutoutiao $43.70 million 27.55 -$282.54 million ($2.10) -2.02
Synacor $143.88 million 0.45 -$7.55 million ($0.13) -12.69

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

Summary

Qutoutiao beats Synacor on 8 of the 13 factors compared between the two stocks.

About Qutoutiao

Qutoutiao Inc. operates mobile platforms for the distribution, consumption, and sharing of light entertainment content in the People's Republic of China. The company operates Qutoutiao, a mobile application that aggregates articles and short videos from professional media and freelancers and presents customized feeds to users; and Quduopai, a mobile application that allows users to create, upload, and view videos. It also provides Midu Novels, a mobile literature application that offers users free literature supported by advertising. The company was formerly known as Qtech Ltd. and changed its name to Qutoutiao Inc. in July 2018. Qutoutiao Inc. was founded in 2016 and is headquartered in Shanghai, China.

About Synacor

Synacor, Inc. operates as a technology development, multiplatform services, and revenue partner for video, Internet, and communications providers; and device manufacturers, governments, and enterprises in the United States and internationally. It enables its customers to provide their consumers engaging, multiscreen experiences with products that require scale, and actionable data and implementation. The company, through its managed portals and advertising solutions, enables its customers to earn revenue by monetizing media among their consumers. It also offers recurring and fee-based revenue solutions, such as Cloud ID Authentication that offers home-based auto-authentication and social login, which enhances the consumer experience by reducing login failures; Email/Collaboration Services that include white-label hosting, security, and migration; and paid content and premium services. The company was formerly known as CKMP, Inc. and changed its name to Synacor, Inc. in July 2001. Synacor, Inc. was founded in 1998 and is headquartered in Buffalo, New York.

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