Weibo (NASDAQ:WB – Get Free Report) and Tuniu (NASDAQ:TOUR – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Dividends
Weibo pays an annual dividend of $0.80 per share and has a dividend yield of 8.0%. Tuniu pays an annual dividend of $0.04 per share and has a dividend yield of 6.5%. Weibo pays out 45.5% of its earnings in the form of a dividend. 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. Weibo is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of recent recommendations for Weibo and Tuniu, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 0 | 1 | 1 | 0 | 2.50 | |
| Tuniu | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Weibo and Tuniu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 26.58% | 11.79% | 6.46% | |
| Tuniu | 1.09% | 3.41% | 1.84% |
Insider & Institutional Ownership
68.8% of Weibo shares are held by institutional investors. 41.3% of Weibo shares are held by insiders. Comparatively, 76.1% of Tuniu shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Weibo has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Tuniu has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.
Earnings and Valuation
This table compares Weibo and Tuniu”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| $1.75 billion | 1.39 | $300.80 million | $1.76 | 5.69 | |
| Tuniu | $70.37 million | 1.03 | $10.57 million | $0.02 | 30.94 |
Weibo has higher revenue and earnings than Tuniu. Weibo is trading at a lower price-to-earnings ratio than Tuniu, indicating that it is currently the more affordable of the two stocks.
Summary
Weibo beats Tuniu on 13 of the 16 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 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.
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