Weibo (NASDAQ:WB) vs. Tuniu (NASDAQ:TOUR) Head-To-Head Review

Tuniu (NASDAQ:TOUR) and Weibo (NASDAQ:WB) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Dividends

Tuniu pays an annual dividend of $0.04 per share and has a dividend yield of 6.5%. Weibo pays an annual dividend of $0.80 per share and has a dividend yield of 8.0%. Tuniu pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weibo pays out 45.5% of its earnings in the form of a dividend. Weibo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

68.8% of Weibo shares are owned by institutional investors. 76.1% of Tuniu shares are owned by insiders. Comparatively, 41.3% of Weibo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Tuniu and Weibo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuniu	1	0	0	0	1.00
Weibo	0	1	1	0	2.50

Weibo has a consensus price target of $14.00, indicating a potential upside of 39.86%. Given Weibo’s stronger consensus rating and higher probable upside, analysts clearly believe Weibo is more favorable than Tuniu.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tuniu	1.09%	3.41%	1.84%
Weibo	26.58%	11.79%	6.46%

Valuation and Earnings

This table compares Tuniu and Weibo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuniu	$70.37 million	1.03	$10.57 million	$0.02	30.94
Weibo	$1.75 billion	1.39	$300.80 million	$1.76	5.69

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

Volatility & Risk

Tuniu has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Weibo has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Summary

Weibo beats Tuniu on 13 of the 16 factors compared between the two stocks.

About Tuniu

Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user’s trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product services for better displaying and promotion of its account and content; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. 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, the People’s Republic of China.