Head to Head Review: Bright Mountain Media (OTCMKTS:BMTM) and iQIYI (NASDAQ:IQ)

Bright Mountain Media (OTCMKTS:BMTMGet Free Report) and iQIYI (NASDAQ:IQGet Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Risk & Volatility

Bright Mountain Media has a beta of 124.25, meaning that its share price is 12,325% more volatile than the S&P 500. Comparatively, iQIYI has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bright Mountain Media and iQIYI”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bright Mountain Media $56.68 million 0.01 -$17.02 million ($0.08) -0.05
iQIYI $4.00 billion 0.44 $104.68 million ($0.06) -30.50

iQIYI has higher revenue and earnings than Bright Mountain Media. iQIYI is trading at a lower price-to-earnings ratio than Bright Mountain Media, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

52.7% of iQIYI shares are owned by institutional investors. 61.6% of Bright Mountain Media shares are owned by insiders. Comparatively, 57.8% of iQIYI shares are owned by 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bright Mountain Media and iQIYI, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bright Mountain Media 0 0 0 0 0.00
iQIYI 2 1 2 0 2.00

iQIYI has a consensus price target of $2.64, indicating a potential upside of 44.26%. Given iQIYI’s stronger consensus rating and higher probable upside, analysts plainly believe iQIYI is more favorable than Bright Mountain Media.

Profitability

This table compares Bright Mountain Media and iQIYI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bright Mountain Media -23.00% N/A -34.88%
iQIYI -1.45% -2.44% -0.71%

Summary

iQIYI beats Bright Mountain Media on 10 of the 14 factors compared between the two stocks.

About Bright Mountain Media

(Get Free Report)

Bright Mountain Media, Inc. provides an end-to-end digital media and advertising services platform that connects brands with targeted consumer demographics in the United States and Israel. It focuses on digital publishing comprising websites, including Mom.com, Cafemom.com, LittleThings.com, and MamasLatinas.com; and advertising technology, consumer insights, creative, and media services. The company serves advertisers, advertising agencies and advertising service organizations. The company was formerly known as Bright Mountain Acquisition Corporation and changed its name to Bright Mountain Media, Inc. in December 2015. Bright Mountain Media, Inc. is based in Boca Raton, Florida.

About iQIYI

(Get Free Report)

iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.

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