Vivid Seats (NASDAQ:SEAT – Get Free Report) and Baidu (NASDAQ:BIDU – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Volatility & Risk
Vivid Seats has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Baidu has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
Insider & Institutional Ownership
39.9% of Vivid Seats shares are held by institutional investors. 60.5% of Vivid Seats shares are held by company insiders. Comparatively, 16.7% of Baidu 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.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vivid Seats | $570.78 million | 0.08 | -$429.30 million | ($45.51) | -0.08 |
| Baidu | $18.46 billion | 1.60 | $799.00 million | ($2.11) | -41.17 |
Baidu has higher revenue and earnings than Vivid Seats. Baidu is trading at a lower price-to-earnings ratio than Vivid Seats, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Vivid Seats and Baidu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vivid Seats | -60.26% | -211.26% | 0.91% |
| Baidu | -2.63% | 4.30% | 2.64% |
Analyst Ratings
This is a summary of current ratings and price targets for Vivid Seats and Baidu, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vivid Seats | 2 | 6 | 2 | 0 | 2.00 |
| Baidu | 4 | 3 | 14 | 0 | 2.48 |
Vivid Seats currently has a consensus target price of $10.27, suggesting a potential upside of 165.98%. Baidu has a consensus target price of $151.53, suggesting a potential upside of 74.43%. Given Vivid Seats’ higher possible upside, equities analysts plainly believe Vivid Seats is more favorable than Baidu.
Summary
Baidu beats Vivid Seats on 9 of the 14 factors compared between the two stocks.
About Vivid Seats
Vivid Seats Inc. operates an online ticket marketplace in the United States, Canada, and Japan. The company operates in two segments, Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers; processes ticket sales on its website and mobile applications through its distribution partners; and sells tickets for sports, concerts, theater events, and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing, and fulfill orders across multiple ticket resale marketplaces; and Vivid Picks daily fantasy sports that allows users to partake in contests by making picks from various sport and player matchups. The Resale segment acquires tickets to resell on secondary ticket marketplaces; and provides internal research and development support for Skybox and to deliver seller software and tools. The company was founded in 2001 and is headquartered in Chicago, Illinois.
About Baidu
Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.
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