Head to Head Contrast: Autohome (NYSE:ATHM) vs. CyberAgent (OTCMKTS:CYGIY)

CyberAgent (OTCMKTS:CYGIY) and Autohome (NYSE:ATHM) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Insider & Institutional Ownership

63.1% of Autohome shares are owned by institutional investors. 5.7% of Autohome shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

CyberAgent has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Autohome has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CyberAgent and Autohome, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CyberAgent	0	0	0	0	0.00
Autohome	2	2	0	0	1.50

Autohome has a consensus target price of $28.00, suggesting a potential upside of 15.18%. Given Autohome’s stronger consensus rating and higher probable upside, analysts clearly believe Autohome is more favorable than CyberAgent.

Dividends

CyberAgent pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Autohome pays an annual dividend of $1.77 per share and has a dividend yield of 7.3%. CyberAgent pays out 20.0% of its earnings in the form of a dividend. Autohome pays out 104.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares CyberAgent and Autohome”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CyberAgent	$5.61 billion	1.08	$108.86 million	$0.15	40.00
Autohome	$6.77 billion	0.42	$245.52 million	$1.70	14.30

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CyberAgent	2.93%	12.20%	6.07%
Autohome	21.74%	7.10%	5.66%

Summary

Autohome beats CyberAgent on 9 of the 15 factors compared between the two stocks.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.

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.