36Kr (NASDAQ:KRKR – Get Free Report) and WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Analyst Ratings
This is a breakdown of current ratings and target prices for 36Kr and WEBTOON Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 36Kr | 1 | 0 | 0 | 0 | 1.00 |
| WEBTOON Entertainment | 1 | 5 | 2 | 0 | 2.12 |
WEBTOON Entertainment has a consensus price target of $13.70, indicating a potential upside of 59.95%. Given WEBTOON Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe WEBTOON Entertainment is more favorable than 36Kr.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| 36Kr | N/A | N/A | N/A |
| WEBTOON Entertainment | -25.09% | 2.06% | 1.57% |
Valuation and Earnings
This table compares 36Kr and WEBTOON Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 36Kr | $32.59 million | 0.18 | $1.55 million | ($3.40) | -0.88 |
| WEBTOON Entertainment | $1.38 billion | 0.84 | -$345.93 million | ($2.63) | -3.26 |
36Kr has higher earnings, but lower revenue than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than 36Kr, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
0.1% of 36Kr shares are owned by institutional investors. 39.4% of 36Kr shares are owned by insiders. Comparatively, 5.6% of WEBTOON Entertainment 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.
Risk and Volatility
36Kr has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 2.56, suggesting that its share price is 156% more volatile than the S&P 500.
Summary
WEBTOON Entertainment beats 36Kr on 9 of the 14 factors compared between the two stocks.
About 36Kr
36Kr Holdings Inc. provides content and business services in the People's Republic of China. It creates and distributes various content, including insightful reports on companies and industries, timely market updates, thought-provoking editorials, and commentaries, as well as original video and audio content in various industries, such as technology, consumer, retail, healthcare, media and entertainment, and enterprise services. The company's business services include online advertising services; enterprise value-added services, such as integrated marketing, advertisement agent, online/offline event, and consulting services; and subscription services to individuals, institutional investors, and enterprises. 36Kr Holdings Inc. was founded in 2010 and is headquartered in Beijing, the People's Republic of China.
About WEBTOON Entertainment
WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.
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