Baidu (NASDAQ:BIDU – Get Free Report) and Sohu.com (NASDAQ:SOHU – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Insider & Institutional Ownership
33.0% of Sohu.com shares are owned by institutional investors. 16.7% of Baidu shares are owned by insiders. Comparatively, 21.1% of Sohu.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Baidu and Sohu.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baidu | 6.73% | 6.54% | 4.10% |
| Sohu.com | 25.92% | -4.20% | -2.55% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baidu | $132.85 billion | 0.31 | $3.26 billion | $3.01 | 39.48 |
| Sohu.com | $598.40 million | 0.74 | -$100.27 million | $5.01 | 2.94 |
Baidu has higher revenue and earnings than Sohu.com. Sohu.com is trading at a lower price-to-earnings ratio than Baidu, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Baidu has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Sohu.com has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Baidu and Sohu.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baidu | 1 | 6 | 14 | 2 | 2.74 |
| Sohu.com | 0 | 1 | 2 | 0 | 2.67 |
Baidu currently has a consensus price target of $146.11, indicating a potential upside of 22.96%. Sohu.com has a consensus price target of $20.00, indicating a potential upside of 35.78%. Given Sohu.com’s higher possible upside, analysts clearly believe Sohu.com is more favorable than Baidu.
Summary
Baidu beats Sohu.com on 9 of the 15 factors compared between the two stocks.
About Baidu
Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.
About Sohu.com
Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.
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