Contrasting Vivint Smart Home (NYSE:VVNT) & Autohome (NYSE:ATHM)

Vivint Smart Home (NYSE:VVNT) and Autohome (NYSE:ATHM) are both mid-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Vivint Smart Home and Autohome’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vivint Smart Home -31.15% N/A -14.49%
Autohome 39.36% 18.93% 14.86%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Vivint Smart Home and Autohome, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vivint Smart Home 0 1 3 0 2.75
Autohome 3 3 4 0 2.10

Vivint Smart Home presently has a consensus target price of $23.25, indicating a potential upside of 105.21%. Autohome has a consensus target price of $71.89, indicating a potential upside of 73.22%. Given Vivint Smart Home’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Vivint Smart Home is more favorable than Autohome.

Institutional & Insider Ownership

79.7% of Vivint Smart Home shares are held by institutional investors. Comparatively, 54.3% of Autohome shares are held by institutional investors. 1.6% of Vivint Smart Home shares are held by company insiders. Comparatively, 5.7% of Autohome shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Vivint Smart Home has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Autohome has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Earnings & Valuation

This table compares Vivint Smart Home and Autohome’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vivint Smart Home $1.26 billion 1.86 -$595.20 million ($2.56) -4.40
Autohome $1.33 billion 3.96 $521.87 million $4.63 8.92

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

Summary

Autohome beats Vivint Smart Home on 10 of the 14 factors compared between the two stocks.

About Vivint Smart Home

Vivint Smart Home, Inc., together with its subsidiaries, engages in the sale, installation, servicing, and monitoring of smart home and security systems primarily in the United States and Canada. The company's smart home platform includes cloud-enabled smart home operating systems; Vivint Assist, an AI-driven smart home automation and assistance software; software-enabled smart home devices; and tech-enabled services to educate, manage, and support the smart home. It also offers other devices, including control panel, security cameras and smoke alarms, door and window sensors, door locks, motion and tilt sensors, glass break detectors, key fobs, medical pendants, carbon monoxide detectors, flood sensors, and lamp modules. The company's solutions enable subscribers to interact with various aspects of home with voice or mobile device, including engaging with people at front door, and viewing live and recorded video inside and outside homes; and control thermostats, locks, lights, and garage doors, as well as managing movement of families, friends, and strangers. As of March 31, 2020, its smart home platform had approximately 1.5 million subscribers and managed approximately 20 million in-home devices. It markets its products through direct-to-home, inside sales channels, and retail partnerships programs. The company was founded in 1999 and is headquartered in Provo, Utah.

About Autohome

Autohome, Inc. is a holding company, which engages in the development, operation, and maintenance of mobile applications and automobile websites. It offers used vehicles and new car dealer listings. Autohome provides professionally produced and user-generated content, a comprehensive automobile library and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle. The company was founded in June 2008 and is headquartered in Beijing, China.

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