Analyzing United Internet (OTCMKTS:UDIRF) & Autohome (NYSE:ATHM)

Autohome (NYSE:ATHM) and United Internet (OTCMKTS:UDIRF) are both mid-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autohome	$964.42 million	2.84	$245.52 million	$1.70	13.78
United Internet	$6.85 billion	0.77	$114.57 million	$0.74	36.94

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Autohome and United Internet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autohome	1	2	0	0	1.67
United Internet	1	0	0	0	1.00

Autohome presently has a consensus price target of $28.00, suggesting a potential upside of 19.56%. Given Autohome’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Autohome is more favorable than United Internet.

Institutional & Insider Ownership

63.1% of Autohome shares are owned by institutional investors. 5.7% of Autohome shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Autohome	21.62%	6.72%	5.35%
United Internet	1.90%	2.19%	1.00%

Volatility & Risk

Autohome has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, United Internet has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.

Summary

Autohome beats United Internet on 10 of the 13 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 United Internet

United Internet AG, through its subsidiaries, operates as an Internet service provider worldwide. The company operates through Consumer Access, Business Access, Consumer Applications, and Business Applications segments. It offers landline-based broadband and mobile internet products, including home networks, online storage, telephony, and IPTV for private users; and telecommunication products ranging from fiber-optic direct connections to tailored ICT solutions, which include voice, data, and network solutions, as well as infrastructure services to national and international carriers and ISPs. The company also provides applications and services for home users, such as personal information management applications comprising email, to-do lists, appointments, and addresses; and online cloud storage, as well as domains and website solutions. In addition, it provides business applications for freelancers and small to medium enterprises, such as domains, websites, web hosting, servers, cloud solutions, e-shops, group work, online cloud storage, and office software. It offers its access products through the yourfone, smartmobile.de, 1&1, and 1&1 Versatel brands; and applications through GMX, mail.com, WEB.DE, home.pl, Arsys, STRATO, IONOS, Fasthosts, we22, InterNetX, united-domains, and World4You brand names. In addition, the company offers customers professional services in the fields of active domain management; performance-based advertising and sales services under the Sedo brand name; online advertising services under the United Internet Media brand name; and white-label website builder services under the we22 brand, as well as sells IT hardware. The company was incorporated in 1988 and is headquartered in Montabaur, Germany.