Financial Contrast: Baidu (BIDU) & Its Competitors

Baidu (NASDAQ: BIDU) is one of 44 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it compare to its peers? We will compare Baidu to related businesses based on the strength of its profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Valuation & Earnings

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This table compares Baidu and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Baidu $13.03 billion $2.81 billion 28.85
Baidu Competitors $6.96 billion $964.57 million 40.63

Baidu has higher revenue and earnings than its peers. Baidu is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Baidu has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, Baidu’s peers have a beta of 1.41, meaning that their average share price is 41% more volatile than the S&P 500.

Insider and Institutional Ownership

63.1% of Baidu shares are held by institutional investors. Comparatively, 49.2% of shares of all “Computer programming, data processing, & other computer related” companies are held by institutional investors. 16.7% of Baidu shares are held by insiders. Comparatively, 14.7% of shares of all “Computer programming, data processing, & other computer related” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Baidu and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baidu 21.67% 17.61% 8.15%
Baidu Competitors -16.11% -45.92% -1.15%

Analyst Ratings

This is a breakdown of recent recommendations for Baidu and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baidu 1 6 11 1 2.63
Baidu Competitors 509 1909 4641 230 2.63

Baidu currently has a consensus target price of $257.60, suggesting a potential upside of 10.80%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 5.76%. Given Baidu’s stronger consensus rating and higher possible upside, research analysts clearly believe Baidu is more favorable than its peers.

Summary

Baidu beats its peers on 11 of the 13 factors compared.

About Baidu

Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI. The Baidu Core segment offers products for uses, including Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services through mobile browsers; Baidu Feed that provides users with personalized timeline to meet their personal interests reflected in their past online behaviors, such as search and browsing, and their demographics; and Bear Paw Account that enables verified brands and businesses to aggregate their content from Websites, wapsites, and open-platform apps. It also provides Baijiahao, a publisher platform for content providers; Baidu Post Bar, a social media platform; Haokan Videos, an online short-form video aggregation platform; Baidu Knows, a knowledge sharing platform; Baidu Encyclopedia; Baidu Education, an online educational resources platform; Baidu Mobile Assistant, a mobile app marketplace; Baidu Mobile Guardian, a phone security software; DuerOS, a conversational artificial intelligence platform; Baidu Wallet, an online and mobile payment service; Baidu Consumer Credit, an installment payment service; Baidu Wealth Management, a wealth management service; Baidu Maps that offers services relating to locations and intelligent routing and navigation; Baidu Cloud Drive, a personal cloud service platform; and various mobile products and services. In addition, this segment offers online marketing services based on search queries, contextuals, audience attributes, media and placement attributes, as well as Baidu Feed; Baidu Cloud, a public cloud computing platform; and Apollo, an open source autonomous driving platform. The iQIYI segment provides Internet video streaming services. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, China.

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