Financial Contrast: Yandex (YNDX) vs. Weibo (WB)

Yandex (NASDAQ: YNDX) and Weibo (NASDAQ:WB) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Volatility and Risk

Yandex has a beta of 2.67, indicating that its share price is 167% more volatile than the S&P 500. Comparatively, Weibo has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500.

Earnings and Valuation

This table compares Yandex and Weibo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yandex $1.63 billion 6.70 $152.40 million $0.81 41.41
Weibo $1.15 billion 19.70 $352.59 million $1.56 65.64

Weibo has lower revenue, but higher earnings than Yandex. Yandex is trading at a lower price-to-earnings ratio than Weibo, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

70.7% of Yandex shares are owned by institutional investors. Comparatively, 23.9% of Weibo shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Yandex and Weibo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yandex 10.30% 15.28% 10.61%
Weibo 31.12% 36.15% 19.78%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Yandex and Weibo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yandex 1 1 6 0 2.63
Weibo 0 0 8 0 3.00

Yandex currently has a consensus target price of $39.31, indicating a potential upside of 17.21%. Weibo has a consensus target price of $135.13, indicating a potential upside of 31.96%. Given Weibo’s stronger consensus rating and higher probable upside, analysts plainly believe Weibo is more favorable than Yandex.

Summary

Weibo beats Yandex on 10 of the 13 factors compared between the two stocks.

About Yandex

Yandex N.V., an Internet and technology company, operates an Internet search engine in Russia and internationally. The company offers search, location-based, personalized, and mobile services that enable users to find information, and communicate and connect over the Internet from desktops and mobile devices. It provides geolocation services, such as Yandex.Maps, Yandex.Navigator, Yandex.Auto, and Yandex.Transport; Yandex.Mail that provides users access to their email accounts; Yandex.Disk, a cloud-based storage service; Yandex.News, an online news aggregation service; Yandex.Weather, a service that offers hyperlocal weather information; Yandex Browser for desktops and mobile platforms; and Yandex Search Apps. The company also provides Yandex.Direct, an auction-based advertising placement platform; Yandex Ad Network service; Yandex RTB, a programmatic advertising product; mobile advertising products; business directory; and Yandex.Market, an e-commerce gateway service. In addition, it offers Yandex.Taxi, a ride-sharing service; Auto.ru, a classified platform for used and new cars, commercial vehicles, and spare parts; Yandex.Realty, a real estate classifieds platform; Yandex.Jobs, a job search Website; and Yandex.Travel, a tour aggregator service. Further, it offers KinoPoisk, a Russian language Website for movies, TV series, celebrity content, and entertainment news; Yandex.Music, a music streaming service; Yandex.Afisha platform that allow users to buy tickets to cinemas, theaters, and concerts online; and Yandex.TV Program, a service providing users with an up to date schedule of broadcast, cable and digital TV channels, as well as an option to view certain TV channels online. Additionally, it offers Yandex Zen, a personal recommendation service; and Yandex Launcher that allows users to adapt their android phones to fit their style and fill it with content from all over the Internet. Yandex N.V. was incorporated in 2004 and is based in Schiphol, the Netherlands.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates through two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform. It also provides third-party online games, including role-play, card, and strategy games, as well as various services and functions to VIP members. In addition, the company offers advertising and marketing solutions, such as social display advertisements; and promoted feeds, accounts, and trends enable its customers to promote their brands and conduct marketing activities. Further, it provides copyright content, such as TV channels, online video Websites, and operators with copyright content through traffic resource exchange and content traffic sharing; MCNs and other self-media to manage and provide services to content creators on Weibo, such as MCNs, unions, and e-commerce partners; other app developers an application platform which allows users to log into third-party applications; and Weibo Wallet products that enable platform partners to conduct interest generation activities on Weibo. 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, China. Weibo Corporation is a subsidiary of SINA Corporation.

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