Autohome (NYSE:ATHM – Get Free Report) and KE (NYSE:BEKE – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Dividends
Autohome pays an annual dividend of $1.75 per share and has a dividend yield of 10.7%. KE pays an annual dividend of $0.23 per share and has a dividend yield of 1.4%. Autohome pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KE pays out 54.8% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Autohome and KE”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Autohome | $922.63 million | 2.05 | $225.19 million | $1.64 | 9.99 |
| KE | $13.52 billion | 1.38 | $428.13 million | $0.42 | 39.63 |
KE has higher revenue and earnings than Autohome. Autohome is trading at a lower price-to-earnings ratio than KE, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
63.1% of Autohome shares are owned by institutional investors. Comparatively, 39.3% of KE shares are owned by institutional investors. 5.7% of Autohome shares are owned by company insiders. Comparatively, 6.8% of KE shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for Autohome and KE, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Autohome | 1 | 4 | 0 | 0 | 1.80 |
| KE | 0 | 1 | 6 | 0 | 2.86 |
Autohome presently has a consensus target price of $22.65, suggesting a potential upside of 38.21%. KE has a consensus target price of $23.07, suggesting a potential upside of 38.60%. Given KE’s stronger consensus rating and higher possible upside, analysts plainly believe KE is more favorable than Autohome.
Profitability
This table compares Autohome and KE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Autohome | 21.43% | 5.94% | 4.75% |
| KE | 3.77% | 5.47% | 3.10% |
Risk & Volatility
Autohome has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, KE has a beta of -0.35, indicating that its share price is 135% less volatile than the S&P 500.
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 KE
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
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