Critical Survey: Baidu (NASDAQ:BIDU) & KnowBe4 (NASDAQ:KNBE)

Baidu (NASDAQ:BIDUGet Rating) and KnowBe4 (NASDAQ:KNBEGet Rating) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Earnings & Valuation

This table compares Baidu and KnowBe4’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baidu $19.54 billion 1.91 $1.61 billion $4.23 25.50
KnowBe4 $246.30 million 11.72 -$11.85 million ($0.11) -150.26

Baidu has higher revenue and earnings than KnowBe4. KnowBe4 is trading at a lower price-to-earnings ratio than Baidu, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Baidu and KnowBe4’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baidu 7.90% 5.54% 3.27%
KnowBe4 -4.81% -0.66% -0.23%

Institutional & Insider Ownership

71.8% of Baidu shares are owned by institutional investors. Comparatively, 73.4% of KnowBe4 shares are owned by institutional investors. 16.7% of Baidu shares are owned by insiders. Comparatively, 5.0% of KnowBe4 shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Baidu and KnowBe4, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baidu 1 3 14 0 2.72
KnowBe4 0 3 10 0 2.77

Baidu presently has a consensus price target of $246.44, indicating a potential upside of 128.44%. KnowBe4 has a consensus price target of $28.38, indicating a potential upside of 71.72%. Given Baidu’s higher probable upside, equities analysts clearly believe Baidu is more favorable than KnowBe4.

Summary

Baidu beats KnowBe4 on 10 of the 13 factors compared between the two stocks.

About Baidu (Get Rating)

Baidu, Inc. offers internet search services in China. It operates through Baidu Core and iQIYI segments. 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; 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 Healthcare Wiki; Baidu Wenku; Baidu Scholar; Baidu Experience; Baidu Post; 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, autonomous 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. Baidu, Inc. 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.

About KnowBe4 (Get Rating)

KnowBe4, Inc. engages in the development, marketing, and sale of its Software-as-a-Service-based security awareness platform. The company provides a platform incorporating security awareness training and simulated phishing with analytics and reporting that helps organizations manage the ongoing problem of social engineering. Its products include Kevin Mitnick Security Awareness Training, a security awareness training product; Compliance Plus, a compliance training product, which enables organizations to offer their employees with relevant, timely, and engaging compliance content across a range of topics from data privacy to diversity, equity, and inclusion; PhishER, its security orchestration, automation, and response product, which enables security professionals to prioritize and automate security workstreams in response to attacks targeted at the human layer; and KnowBe4 Compliance Manager, its governance, risk, and compliance product that enables organizations to analyze security risk and automate the management of compliance and audit functions. The company also offers Security Coach, a solution to address human behavior risks through human detection and response; and PasswordIQ that would be used to mitigate risk related to password hygiene issues, such as weak or breached passwords. It serves its customers directly through inside sales teams for enterprise and small and medium businesses, as well as indirectly through channel partners and managed service providers. The company was formerly known as SEQRIT, LLC and changed its name to KnowBe4, Inc. in January 2016. KnowBe4, Inc. was founded in 2010 and is headquartered in Clearwater, Florida.

Receive News & Ratings for Baidu Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Baidu and related companies with MarketBeat.com's FREE daily email newsletter.