LINE Corporation (NYSE: LN) and Twitter (NYSE:TWTR) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitabiliy, valuation, risk and earnings.

Valuation and Earnings

This table compares LINE Corporation and Twitter’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LINE Corporation $1.38 billion 5.52 $192.27 million N/A N/A
Twitter $2.46 billion 4.67 $142.67 million ($0.63) -25.00

LINE Corporation has higher revenue, but lower earnings than Twitter.

Analyst Ratings

This is a summary of current ratings and target prices for LINE Corporation and Twitter, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LINE Corporation 1 6 2 0 2.11
Twitter 14 20 5 0 1.77

Twitter has a consensus price target of $15.44, indicating a potential downside of 1.96%. Given Twitter’s higher probable upside, analysts clearly believe Twitter is more favorable than LINE Corporation.

Institutional and Insider Ownership

3.6% of LINE Corporation shares are held by institutional investors. Comparatively, 47.0% of Twitter shares are held by institutional investors. 10.8% of Twitter shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares LINE Corporation and Twitter’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LINE Corporation 5.44% 6.76% 4.00%
Twitter -18.25% -2.91% -1.98%

Summary

LINE Corporation beats Twitter on 6 of the 11 factors compared between the two stocks.

LINE Corporation Company Profile

LINE Corporation is a Japan-based company mainly engaged in the operation of LINE business portal business. Its LINE business portal segment includes communication and content service and advertising service. Communication and content service provides communication, contents and other services, such as LINE Pay, LINE FRIENDS and LINE Mobile. Advertising service provides LINE advertising and portal advertising services.

Twitter Company Profile

Twitter, Inc. offers products and services for users, advertisers, developers and data partners. The Company’s products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Its Twitter is a platform for public self-expression and conversation in real time. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser. Its Promoted Products enable its advertisers to promote their brands, products and services, amplify their visibility and reach, and extend the conversation around their advertising campaigns. Promoted Accounts appear in the same format and place as accounts suggested by its Who to Follow recommendation engine, or in some cases, in Tweets in a user’s timeline. Promoted Trends appear at the top of the list of trending topics for an entire day in a particular country or on a global basis. Its MoPub is a mobile-focused advertising exchange. Twitter Audience Platform is an advertising offering.

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