Tucows (NASDAQ: TCX) and Bitauto Holdings Limited (NYSE:BITA) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

Tucows has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Bitauto Holdings Limited has a beta of 3.06, suggesting that its stock price is 206% more volatile than the S&P 500.

Profitability

This table compares Tucows and Bitauto Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tucows 6.06% 41.65% 6.52%
Bitauto Holdings Limited -5.11% 3.28% 1.52%

Institutional & Insider Ownership

36.5% of Tucows shares are owned by institutional investors. Comparatively, 18.5% of Bitauto Holdings Limited shares are owned by institutional investors. 13.2% of Tucows shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Tucows and Bitauto Holdings Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tucows $251.66 million 2.33 $29.37 million $1.43 38.85
Bitauto Holdings Limited $926.74 million 3.26 $95.77 million ($1.07) -36.71

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Tucows and Bitauto Holdings Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tucows 0 0 1 0 3.00
Bitauto Holdings Limited 0 0 2 0 3.00

Tucows presently has a consensus target price of $36.00, suggesting a potential downside of 35.19%. Bitauto Holdings Limited has a consensus target price of $34.00, suggesting a potential downside of 13.44%. Given Bitauto Holdings Limited’s higher possible upside, analysts clearly believe Bitauto Holdings Limited is more favorable than Tucows.

Tucows Company Profile

Tucows Inc. is engaged in providing Internet services. The Company’s segments include Network Access Services and Domain Services. The Network Access Services segment includes mobile, fixed high-speed Internet access services, Internet hosting and network consulting services. The Domain Services segment wholesale and retail domain name registration services, value added services and portfolio services. The Company focuses on serving the needs of this network of resellers by providing services, interfaces, proactive and attentive customer service, reseller-oriented technology and agile design and development processes. The Company focuses its service offerings under brands, including OpenSRS, YummyNames, Platypus, Hover and Ting. As of December 31, 2016, the OpenSRS Domain Service managed 15 million domain names under the Tucows ICANN registrar accreditation and for other registrars. As of December 31, 2016, Ting managed mobile telephony services for approximately 151,000 subscribers.

Bitauto Holdings Limited Company Profile

Bitauto Holdings Limited is a provider of Internet content and marketing services for China’s automotive industry. The Company’s bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.

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