Reviewing Opera (NASDAQ:OPRA) & Tuniu (NASDAQ:TOUR)

Opera (NASDAQ:OPRA) and Tuniu (NASDAQ:TOUR) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Opera and Tuniu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Opera	13.93%	8.91%	7.95%
Tuniu	1.09%	3.41%	1.84%

Volatility & Risk

Opera has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Tuniu has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Insider and Institutional Ownership

10.2% of Opera shares are held by institutional investors. 84.4% of Opera shares are held by company insiders. Comparatively, 76.1% of Tuniu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Opera and Tuniu”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Opera	$480.65 million	2.63	$80.77 million	$0.90	15.67
Tuniu	$70.37 million	1.13	$10.57 million	$0.02	33.96

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Opera and Tuniu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Opera	1	1	4	0	2.50
Tuniu	1	0	0	0	1.00

Opera currently has a consensus target price of $23.83, suggesting a potential upside of 69.03%. Given Opera’s stronger consensus rating and higher probable upside, analysts plainly believe Opera is more favorable than Tuniu.

Dividends

Opera pays an annual dividend of $0.78 per share and has a dividend yield of 5.5%. Tuniu pays an annual dividend of $0.04 per share and has a dividend yield of 5.9%. Opera pays out 86.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tuniu pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Opera beats Tuniu on 14 of the 16 factors compared between the two stocks.

About Opera

Opera Limited, together with its subsidiaries, provides mobile and PC web browsers and related products and services in Norway and internationally. The company offers mobile browser products, such as Opera Mini, Opera browser for Android and iOS, and Opera GX for PCs and Mobile; Opera Touch; PC browsers, including Opera for Computers and Opera GX; Apex Football; Opera VPN Pro; and Opera News, an AI-powered personalized news discovery and aggregation service. It provides Opera Crypto Browser for PCs and mobile; browser-based cashback rewards programs; owns GameMaker Studio, a 2D gaming development platform; and GXC, a gaming portal. In addition, the company operates Opera Ads, an online advertising platform; and offers Web3 and e-commerce services. Opera Limited was founded in 1995 and is headquartered in Oslo, Norway. Opera Limited is a subsidiary of Kunlun Tech Limited.

About Tuniu

Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.