Comparing GigaMedia (NASDAQ:GIGM) and Autohome (NYSE:ATHM)

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

Valuation and Earnings

This table compares GigaMedia and Autohome”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaMedia	$2.97 million	6.77	-$2.30 million	($0.05)	-36.40
Autohome	$964.42 million	3.61	$245.52 million	$1.70	17.53

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

Analyst Ratings

This is a summary of current ratings and target prices for GigaMedia and Autohome, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaMedia	0	0	0	0	0.00
Autohome	0	2	1	1	2.75

Autohome has a consensus price target of $36.00, suggesting a potential upside of 20.81%. Given Autohome’s stronger consensus rating and higher possible upside, analysts plainly believe Autohome is more favorable than GigaMedia.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GigaMedia	-19.50%	-1.57%	-1.49%
Autohome	21.74%	7.10%	5.66%

Insider and Institutional Ownership

13.5% of GigaMedia shares are owned by institutional investors. Comparatively, 63.1% of Autohome shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by insiders. Comparatively, 5.7% of Autohome shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

GigaMedia has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Autohome has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.

Summary

Autohome beats GigaMedia on 13 of the 15 factors compared between the two stocks.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.

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.