Weibo (NASDAQ:WB – Get Free Report) and Opera (NASDAQ:OPRA – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Insider and Institutional Ownership
68.8% of Weibo shares are owned by institutional investors. Comparatively, 10.2% of Opera shares are owned by institutional investors. 41.3% of Weibo shares are owned by insiders. Comparatively, 84.4% of Opera shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Weibo and Opera”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| $1.76 billion | 1.19 | $449.02 million | $1.70 | 5.05 | |
| Opera | $614.83 million | 1.97 | $108.28 million | $1.19 | 11.34 |
Weibo has higher revenue and earnings than Opera. Weibo is trading at a lower price-to-earnings ratio than Opera, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Weibo and Opera, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 0 | 1 | 1 | 0 | 2.50 | |
| Opera | 0 | 1 | 4 | 1 | 3.00 |
Weibo currently has a consensus target price of $14.00, suggesting a potential upside of 63.17%. Opera has a consensus target price of $22.75, suggesting a potential upside of 68.64%. Given Opera’s stronger consensus rating and higher possible upside, analysts clearly believe Opera is more favorable than Weibo.
Risk & Volatility
Weibo has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Opera has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.
Dividends
Weibo pays an annual dividend of $0.80 per share and has a dividend yield of 9.3%. Opera pays an annual dividend of $0.78 per share and has a dividend yield of 5.8%. Weibo pays out 47.1% of its earnings in the form of a dividend. Opera pays out 65.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Weibo is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Weibo and Opera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 25.55% | 10.63% | 5.87% | |
| Opera | 17.61% | 8.00% | 7.12% |
Summary
Opera beats Weibo on 9 of the 17 factors compared between the two stocks.
About Weibo
Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user’s trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product services for better displaying and promotion of its account and content; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, the People’s Republic of China.
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.
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