Youku Tudou (NASDAQ: YOKU) and Tucows (NASDAQ:TCX) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitabiliy and dividends.

Valuation & Earnings

This table compares Youku Tudou and Tucows’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Youku Tudou N/A N/A N/A N/A N/A
Tucows $214.64 million 2.86 $26.27 million $1.32 44.28

Tucows has higher revenue and earnings than Youku Tudou.

Analyst Recommendations

This is a summary of recent ratings for Youku Tudou and Tucows, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Youku Tudou 0 0 0 0 N/A
Tucows 0 0 1 0 3.00

Tucows has a consensus price target of $36.00, indicating a potential downside of 38.41%. Given Tucows’ higher probable upside, analysts clearly believe Tucows is more favorable than Youku Tudou.

Insider & Institutional Ownership

29.6% of Tucows shares are owned by institutional investors. 17.2% of Tucows shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Youku Tudou and Tucows’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Youku Tudou -23.48% -12.96% -9.88%
Tucows 6.55% 43.00% 7.66%

Summary

Tucows beats Youku Tudou on 8 of the 8 factors compared between the two stocks.

Youku Tudou Company Profile

Youku Tudou Inc. is an Internet television company in the People’s Republic of China. The Company’s Youku and Tudou platforms enable users to search, view and share video content across multiple devices. Its monthly visitors from home and office personal computer (PC) users numbered approximately 256 million and 169 million for Youku platform and Tudou platform, respectively. Through its Youku and Tudou platforms, it has built an online video content library. The videos accessible on its two platforms are produced content, such as television serial dramas, movies, variety shows, current events reports and music videos. The remaining content consists of user-generated content and in-house productions. The Company licenses professionally produced video content at fixed rates for a specified term. The terms of its licenses vary depending on the type of content and producer, though the terms for television serial dramas and movies range from six months to ten years.

Tucows Company Profile

Tucows Inc. is engaged in providing Internet services. The Company’s segments include Network Access Services and Domain Services. The Network Access Services segment includes mobile, fixed high-speed Internet access services, Internet hosting and network consulting services. The Domain Services segment wholesale and retail domain name registration services, value added services and portfolio services. The Company focuses on serving the needs of this network of resellers by providing services, interfaces, proactive and attentive customer service, reseller-oriented technology and agile design and development processes. The Company focuses its service offerings under brands, including OpenSRS, YummyNames, Platypus, Hover and Ting. As of December 31, 2016, the OpenSRS Domain Service managed 15 million domain names under the Tucows ICANN registrar accreditation and for other registrars. As of December 31, 2016, Ting managed mobile telephony services for approximately 151,000 subscribers.

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