Head-To-Head Review: Autohome (ATHM) and Leaf Group (LFGR)

Autohome (NYSE: ATHM) and Leaf Group (NYSE:LFGR) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Profitability

This table compares Autohome and Leaf Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autohome 35.15% 26.49% 18.39%
Leaf Group -19.96% -39.95% -29.81%

Risk and Volatility

Autohome has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500. Comparatively, Leaf Group has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Institutional & Insider Ownership

41.5% of Autohome shares are owned by institutional investors. Comparatively, 58.6% of Leaf Group shares are owned by institutional investors. 5.7% of Autohome shares are owned by company insiders. Comparatively, 47.6% of Leaf Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Autohome and Leaf Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Autohome $954.49 million 12.75 $307.64 million $2.63 39.16
Leaf Group $128.99 million 1.91 -$31.13 million ($1.34) -7.43

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

Analyst Ratings

This is a summary of current recommendations for Autohome and Leaf Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autohome 1 0 5 0 2.67
Leaf Group 0 1 2 0 2.67

Autohome currently has a consensus target price of $74.95, suggesting a potential downside of 27.23%. Leaf Group has a consensus target price of $10.50, suggesting a potential upside of 5.53%. Given Leaf Group’s higher possible upside, analysts plainly believe Leaf Group is more favorable than Autohome.

Summary

Autohome beats Leaf Group on 9 of the 12 factors compared between the two stocks.

Autohome Company Profile

Autohome Inc. operates as an online destination for automobile consumers in the People's Republic of China. The company, through its Websites, autohome.com.cn and che168.com, delivers comprehensive, independent, and interactive content to automobile buyers and owners, including company generated content, such as automobile-related articles and reviews, pricing trends in various local markets, photographs, video clips, and live streaming; automobile library, which comprises a range of specifications covering performance levels, dimensions, powertrains, vehicle bodies, interiors, safety, entertainment systems, and other features, as well as manufacturers' suggested retail prices; new and used automobile listings, and promotional information; and user generated content and forums. It also offers advertising services for automakers and dealers; dealer subscription services that allow dealers to market their inventory and services through its Websites and mobile applications; and used automobile listings services, which allow used automobile dealers and individuals to market their automobiles for sale on its Websites. In addition, Autohome Inc. operates Autohome Mall, an online transaction platform that facilitates direct vehicle sales and commission-based services; provides iOS- and Android-based applications to allow its users to access its content; and offers technical support and management consulting services. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was founded in 2008 and is headquartered in Beijing, the People's Republic of China. Autohome Inc. is a subsidiary of Yun Chen Capital Cayman.

Leaf Group Company Profile

Leaf Group Ltd., together with its subsidiaries, operates as a diversified consumer Internet company worldwide. The company operates in two segments, Marketplaces and Media. The Marketplaces segment offers Society6.com, which provides artists with an online commerce platform to feature and sell their original art and designs on consumer products in the home décor, accessories, and apparel categories; and Deny Designs, an artist-driven home décor brand. This segment also provides Saatchi Art, an online art gallery featuring a selection of original paintings, drawings, sculpture, and photography that provides a global community of artists an environment to exhibit and sell their work directly to consumers. The Media segment offers Livestrong.com, a healthy living destination with a library of health, fitness, lifestyle, and nutrition articles and videos; Hunker, an online destination for home and space inspiration, original home tours, practical do-it-yourself solutions, and design advice for people; Cuteness.com, a community for pet owners and animal lovers; and eHow, an online resource providing inspiration and solutions for do-it-yourself projects and crafts. This segment also provides content creation services; traffic sources; mobile applications; and monetization solutions, as well as develops partner sites. Leaf Group Ltd. sells its products through wholesale channels to trade and hospitality clients, as well as through retail distribution partners. The company was formerly known as Demand Media, Inc. and changed its name to Leaf Group Ltd. in November 2016. Leaf Group Ltd. was founded in 2006 and is headquartered in Santa Monica, California.

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