Autohome (NYSE:ATHM – Get Free Report) and Reddit (NYSE:RDDT – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Institutional and Insider Ownership
63.1% of Autohome shares are owned by institutional investors. 5.7% of Autohome shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Autohome and Reddit”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Autohome | $7.30 billion | 0.42 | $286.40 million | $2.01 | 12.58 |
$1.12 billion | 26.20 | -$90.82 million | N/A | N/A |
Analyst Ratings
This is a breakdown of recent recommendations for Autohome and Reddit, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Autohome | 0 | 4 | 0 | 1 | 2.40 |
1 | 5 | 14 | 1 | 2.71 |
Autohome currently has a consensus target price of $28.00, indicating a potential upside of 10.76%. Reddit has a consensus target price of $136.75, indicating a potential downside of 18.35%. Given Autohome’s higher possible upside, equities analysts clearly believe Autohome is more favorable than Reddit.
Profitability
This table compares Autohome and Reddit’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Autohome | 24.36% | 7.79% | 6.07% |
-47.83% | -40.54% | -27.32% |
Summary
Autohome beats Reddit on 8 of the 11 factors compared between the two stocks.
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.
About Reddit
Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.
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