Autohome (NYSE:ATHM – Get Free Report) and Yelp (NYSE:YELP – Get Free Report) are both communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.
Volatility and Risk
Autohome has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Yelp has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
Valuation & Earnings
This table compares Autohome and Yelp”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Autohome | $5.49 billion | 0.43 | $225.19 million | $1.16 | 17.73 |
| Yelp | $1.46 billion | 0.68 | $145.60 million | $2.09 | 8.75 |
Autohome has higher revenue and earnings than Yelp. Yelp is trading at a lower price-to-earnings ratio than Autohome, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
63.1% of Autohome shares are held by institutional investors. Comparatively, 90.1% of Yelp shares are held by institutional investors. 5.7% of Autohome shares are held by company insiders. Comparatively, 8.3% of Yelp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Autohome and Yelp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Autohome | 17.05% | 4.44% | 3.53% |
| Yelp | 8.59% | 19.52% | 13.44% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Autohome and Yelp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Autohome | 1 | 5 | 0 | 0 | 1.83 |
| Yelp | 3 | 3 | 1 | 0 | 1.71 |
Autohome currently has a consensus target price of $17.77, indicating a potential downside of 13.60%. Yelp has a consensus target price of $26.57, indicating a potential upside of 45.37%. Given Yelp’s higher probable upside, analysts plainly believe Yelp is more favorable than Autohome.
Summary
Yelp beats Autohome on 9 of the 14 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 Yelp
Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click advertising and multi-location Ad products, as well as enables businesses to deliver targeted advertising to large and high-intent audience; and business listing page products. The company also offers other services comprising Yelp Guest Manager, a subscription-based suite of front-of-house management tools for restaurants, nightlife and certain other venues, which include online reservations, a waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as through hostless kiosks, and seating and server rotation management tools; Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content; and Yelp Fusion, which offers free access to various basic information through publicly available APIs, and paid access to content and data for consumer-facing enterprise use. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website and business app, as well as non-advertising partner arrangements. It has partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery. The company was incorporated in 2004 and is based in San Francisco, California.
Receive News & Ratings for Autohome Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Autohome and related companies with MarketBeat.com's FREE daily email newsletter.
