Teads (NASDAQ:TEAD – Get Free Report) and Baidu (NASDAQ:BIDU – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Volatility and Risk
Teads has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Baidu has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Teads and Baidu, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teads | 1 | 2 | 1 | 0 | 2.00 |
| Baidu | 4 | 3 | 14 | 0 | 2.48 |
Valuation and Earnings
This table compares Teads and Baidu”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teads | $1.30 billion | 0.04 | -$517.07 million | ($5.53) | -0.09 |
| Baidu | $18.46 billion | 1.60 | $799.00 million | ($2.11) | -41.17 |
Baidu has higher revenue and earnings than Teads. Baidu is trading at a lower price-to-earnings ratio than Teads, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Teads and Baidu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teads | -43.32% | -49.37% | -6.14% |
| Baidu | -2.63% | 4.30% | 2.64% |
Institutional and Insider Ownership
60.4% of Teads shares are held by institutional investors. 12.0% of Teads shares are held by company insiders. Comparatively, 16.7% of Baidu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Baidu beats Teads on 10 of the 14 factors compared between the two stocks.
About Teads
Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.
About Baidu
Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.
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