Autohome (NYSE:ATHM) & QuoteMedia (OTCMKTS:QMCI) Critical Review

QuoteMedia (OTCMKTS:QMCI) and Autohome (NYSE:ATHM) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

63.1% of Autohome shares are held by institutional investors. 47.1% of QuoteMedia shares are held by company insiders. Comparatively, 5.7% of Autohome shares are held 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.

Profitability

This table compares QuoteMedia and Autohome’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuoteMedia	-12.55%	N/A	-33.71%
Autohome	21.74%	7.10%	5.66%

Volatility & Risk

QuoteMedia has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Autohome has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for QuoteMedia and Autohome, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuoteMedia	0	0	0	0	0.00
Autohome	1	3	0	0	1.75

Autohome has a consensus price target of $28.00, indicating a potential upside of 16.76%. Given Autohome’s stronger consensus rating and higher possible upside, analysts plainly believe Autohome is more favorable than QuoteMedia.

Valuation and Earnings

This table compares QuoteMedia and Autohome”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuoteMedia	$18.74 million	0.82	-$1.33 million	($0.03)	-5.66
Autohome	$6.77 billion	0.41	$245.52 million	$1.70	14.11

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

Summary

Autohome beats QuoteMedia on 10 of the 13 factors compared between the two stocks.

About QuoteMedia

QuoteMedia, Inc. provides financial data, market research information, analytics, news feeds, and financial software solutions to online brokerages, banks, clearing firms, financial service companies, media portals, and public corporations worldwide. It collects, aggregates, and delivers delayed and real-time financial data content through the Internet. The company also offers market information and services, including streaming stock market data feeds, research and analysis information, content applications, portfolio management systems, software products, corporate investor relations provisioning, news services, mobile apps, and custom development. In addition, its data feeds coverage includes equities, options, futures, commodities, currencies, mutual funds, ETFs, and indices. Further, the company provides financial data delivery application products and components comprising quote modules, charts, market movers, news, watch lists, tickers, market summaries, option chains, filings, fundamentals, investor relations solutions, stock and fund screeners, and others; and QMod, a web delivery system for delivering market data content to Web platforms. Additionally, it offers portfolio managements systems, including Quotestream Desktop, We, and Mobile, a Web-delivered, embedded application providing real-time, tick-by-tick, streaming market quotes and research information; Quotestream Professional that offers low-latency tick-by-tick data, customizable screens, advanced charting, comprehensive technical analysis, news, and research data for financial services professionals; Web Portfolio Manager, which provides immediate web access to detailed quote data, market and company news, charting, depth/level II, filings, historical data, snap quotes, and others; and Quotestream Connect that delivers real time data feeds to individual users to power third party applications. The company was incorporated in 1992 and is headquartered in Fountain Hills, Arizona.

About Autohome

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company offers Autohome Mall, an online transaction platform; and online bidding platform for used automobiles, as well as collects commissions for facilitating transactions of auto-financing and insurance products on its platform. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the People’s Republic of China.