Reviewing Bilibili (NASDAQ:BILI) and WEBTOON Entertainment (NASDAQ:WBTN)

WEBTOON Entertainment (NASDAQ:WBTN) and Bilibili (NASDAQ:BILI) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for WEBTOON Entertainment and Bilibili, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEBTOON Entertainment	1	5	1	0	2.00
Bilibili	0	1	8	0	2.89

WEBTOON Entertainment currently has a consensus target price of $10.88, suggesting a potential upside of 12.99%. Bilibili has a consensus target price of $29.39, suggesting a potential upside of 100.81%. Given Bilibili’s stronger consensus rating and higher possible upside, analysts plainly believe Bilibili is more favorable than WEBTOON Entertainment.

Profitability

This table compares WEBTOON Entertainment and Bilibili’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEBTOON Entertainment	-25.09%	2.10%	1.60%
Bilibili	4.88%	11.42%	4.29%

Earnings & Valuation

This table compares WEBTOON Entertainment and Bilibili”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEBTOON Entertainment	$1.37 billion	0.95	-$345.93 million	($2.63)	-3.66
Bilibili	$4.34 billion	1.40	$170.67 million	$0.49	29.87

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

Risk & Volatility

WEBTOON Entertainment has a beta of 2.65, meaning that its stock price is 165% more volatile than the S&P 500. Comparatively, Bilibili has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Institutional & Insider Ownership

16.1% of Bilibili shares are held by institutional investors. 5.6% of WEBTOON Entertainment shares are held by company insiders. Comparatively, 22.2% of Bilibili shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Bilibili beats WEBTOON Entertainment on 13 of the 14 factors compared between the two stocks.

About WEBTOON Entertainment

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.

About Bilibili

Bilibili Inc. provides online entertainment services for the young generations in the People's Republic of China. It offers a range of digital content, including professional user generated videos, mobile games, and value-added services, such as live broadcasting, occupationally generated videos, audio drama on Maoer, and comics on Bilibili Comic. The company also provides advertising services; and IP derivatives and other services. In addition, it engages in the business and technology development activities; e-commerce business; and video, comics, and game distribution activities. Bilibili Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.