Analyzing SINA (NASDAQ:SINA) & Activision Blizzard (NASDAQ:ATVI)

Activision Blizzard (NASDAQ:ATVI) and SINA (NASDAQ:SINA) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Risk and Volatility

Activision Blizzard has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, SINA has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Activision Blizzard and SINA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Activision Blizzard 0 4 24 0 2.86
SINA 0 1 2 0 2.67

Activision Blizzard presently has a consensus price target of $91.75, indicating a potential upside of 2.21%. SINA has a consensus price target of $68.00, indicating a potential upside of 62.72%. Given SINA’s higher probable upside, analysts clearly believe SINA is more favorable than Activision Blizzard.

Institutional & Insider Ownership

85.8% of Activision Blizzard shares are owned by institutional investors. Comparatively, 55.2% of SINA shares are owned by institutional investors. 1.1% of Activision Blizzard shares are owned by insiders. Comparatively, 7.4% of SINA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Activision Blizzard and SINA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Activision Blizzard 28.90% 19.07% 12.65%
SINA -4.67% -2.53% -1.33%

Earnings & Valuation

This table compares Activision Blizzard and SINA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Activision Blizzard $6.49 billion 10.69 $1.50 billion $2.08 43.16
SINA $2.16 billion 1.32 -$70.54 million ($1.03) -40.57

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

Summary

Activision Blizzard beats SINA on 11 of the 14 factors compared between the two stocks.

About Activision Blizzard

Activision Blizzard, Inc., together with its subsidiaries, develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. It develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offer downloadable content. The company also maintains a proprietary online gaming service, Battle.net that facilitates the creation of user generated content, digital distribution, and online social connectivity in its games; and develops and publishes interactive entertainment content and services primarily on mobile platforms, such as Android and iOS, as well as distributes its content and services on the PC platform primarily through Facebook. In addition, it operate esports leagues and offer digital advertising content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. The company's key product franchises include Call of Duty, World of Warcraft, Diablo, Hearthstone, Overwatch, and Candy Crush. It serves retailers and distributors, including mass-market retailers, first party digital storefronts, consumer electronics stores, discount warehouses, and game specialty stores through third-party distribution and licensing arrangements. Activision Blizzard, Inc. was incorporated in 1979 and is headquartered in Santa Monica, California.

About SINA

SINA Corporation, together with its subsidiaries, operates as an online media company in the People's Republic of China and internationally. The company operates SINA.com, an online media property that provides region-focused format and content, including feeds from news providers; business news coverage and personal finance columns; sporting events information; entertainment news and events; automobile-related news and service information; technology updates; interactive video products, such as news, sports, and entertainment; and education, digital, fashion, luxury, health, collectibles, travel, and other interest-based channels. It also offers SINA mobile, a mobile portal, which provides news information and entertainment content from SINA.com for mobile users in mobile browser and application format. In addition, it operates Weibo.com that offers discovery products to help users discover content; self-expression products to enable users to express themselves on Weibo platform; social products to promote social interaction between users on Weibo platform; advertising and marketing solutions; and tools and services. Further, the company offers online loan facilitation and payment, VIP membership, live streaming, and game-related services. SINA Corporation was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

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