Financial Comparison: Autoweb (AUTO) & Weibo (WB)

Autoweb (NASDAQ: WB) and Weibo (NASDAQ:WB) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares Autoweb and Weibo’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Autoweb $142.13 million 0.32 -$64.96 million $0.29 12.21
Weibo $1.15 billion 15.54 $352.59 million $1.56 51.78

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

Profitability

This table compares Autoweb and Weibo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autoweb -61.64% -7.50% -5.65%
Weibo 32.03% 37.75% 19.43%

Insider and Institutional Ownership

40.3% of Autoweb shares are owned by institutional investors. Comparatively, 27.3% of Weibo shares are owned by institutional investors. 30.6% of Autoweb shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Autoweb and Weibo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autoweb 0 3 0 0 2.00
Weibo 0 1 8 0 2.89

Autoweb presently has a consensus target price of $5.00, suggesting a potential upside of 41.24%. Weibo has a consensus target price of $134.14, suggesting a potential upside of 66.08%. Given Weibo’s stronger consensus rating and higher possible upside, analysts clearly believe Weibo is more favorable than Autoweb.

Volatility and Risk

Autoweb has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Weibo has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500.

Summary

Weibo beats Autoweb on 12 of the 14 factors compared between the two stocks.

About Autoweb

AutoWeb, Inc. operates as a digital marketing company for the automotive industry in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, which allows consumers to search for used vehicles according to search parameters, such as price, make, model, mileage, year, and location of the vehicle. The company's products and services also comprise WebLeads+ that offers various coupon options, which display marketing messages to consumers visiting the dealer's Website; and Payment Pro, a dealer Website conversion tool that offers consumers real-time online monthly payment information, as well as sells fixed placement advertising across its Website to automotive advertisers. It owns and operates automotive Websites that offers consumers with the information and tools to aid them with their automotive purchase decisions; an automotive search engine that enables manufactures and dealers to optimize advertising campaigns; AutoWeb Traffic Product, a pay-per-click advertising program that offer targeted offers to consumers based on make, model, and geographic location; and AutoWeb consumer traffic referral product that engages car buyers from the AutoWeb's network of automotive Websites to present them with offers based on their make and model of interest, as well as geographic location. The company was formerly known as Autobytel Inc. and changed its name to AutoWeb, Inc. in October 2017. AutoWeb, Inc. was founded in 1995 and is headquartered in Irvine, California.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates through two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform. It also provides third-party online games, including role-play, card, and strategy games, as well as various services and functions to VIP members. In addition, the company offers advertising and marketing solutions, such as social display advertisements; and promoted feeds, accounts, and trends enable its customers to promote their brands and conduct marketing activities. Further, it provides copyright content, such as TV channels, online video Websites, and operators with copyright content through traffic resource exchange and content traffic sharing; MCNs and other self-media to manage and provide services to content creators on Weibo, such as MCNs, unions, and e-commerce partners; other app developers an application platform which allows users to log into third-party applications; and Weibo Wallet products that enable platform partners to conduct interest generation activities on Weibo. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China.

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