Reviewing Sohu.com (NASDAQ:SOHU) and PCCW (OTCMKTS:PCWLF)

Sohu.com (NASDAQ:SOHU) and PCCW (OTCMKTS:PCWLF) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Institutional and Insider Ownership

33.0% of Sohu.com shares are owned by institutional investors. 21.1% of Sohu.com shares are owned by insiders. Comparatively, 1.0% of PCCW 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.

Earnings & Valuation

This table compares Sohu.com and PCCW”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sohu.com	$598.40 million	0.82	-$100.27 million	$5.01	3.27
PCCW	N/A	N/A	N/A	N/A	N/A

PCCW has lower revenue, but higher earnings than Sohu.com.

Volatility & Risk

Sohu.com has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, PCCW has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500.

Profitability

This table compares Sohu.com and PCCW’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sohu.com	25.92%	-4.20%	-2.55%
PCCW	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings for Sohu.com and PCCW, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sohu.com	0	1	2	0	2.67
PCCW	0	0	0	0	0.00

Sohu.com currently has a consensus price target of $20.00, indicating a potential upside of 22.25%. Given Sohu.com’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Sohu.com is more favorable than PCCW.

Summary

Sohu.com beats PCCW on 8 of the 10 factors compared between the two stocks.

About Sohu.com

Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.

About PCCW

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. The company’s services include local telephony, local data and broadband, mobile, enterprise solutions, international telecommunications, and satellite-based and network-based telecommunications services; outsourcing, consulting, and contact center services; and technical consulting and engineering services. It also provides free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; sells mobile handsets and accessories; distributes media content; and mobile video on demand and advertising services through OTT platform. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and media content services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; provision of data services; software development, systems integration, consulting, and informatization activities; the provision of computer and IP/IT related value-added services to business customers; operates customer loyalty program and online merchandise sales; and content production, talent management, and entertainment business. Additionally, the company offers e-commerce, travel, insurance, big data analytics, fintech, and health-tech services. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.