Sina Corporation (NASDAQ: SINA) and MeetMe (NASDAQ:MEET) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitabiliy, analyst recommendations, dividends, earnings and institutional ownership.

Volatility & Risk

Sina Corporation has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, MeetMe has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Profitability

This table compares Sina Corporation and MeetMe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sina Corporation 22.36% 6.19% 4.20%
MeetMe 53.53% 13.16% 12.44%

Valuation and Earnings

This table compares Sina Corporation and MeetMe’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sina Corporation $1.11 billion 5.99 $193.38 million $3.28 28.55
MeetMe $82.86 million 4.44 $26.44 million $0.78 6.78

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

Analyst Recommendations

This is a summary of current ratings and price targets for Sina Corporation and MeetMe, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sina Corporation 0 1 7 0 2.88
MeetMe 0 0 4 0 3.00

Sina Corporation presently has a consensus price target of $91.81, indicating a potential downside of 1.95%. MeetMe has a consensus price target of $9.25, indicating a potential upside of 74.86%. Given MeetMe’s stronger consensus rating and higher probable upside, analysts clearly believe MeetMe is more favorable than Sina Corporation.

Insider and Institutional Ownership

65.6% of Sina Corporation shares are owned by institutional investors. Comparatively, 52.4% of MeetMe shares are owned by institutional investors. 7.4% of Sina Corporation shares are owned by insiders. Comparatively, 4.7% of MeetMe shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Sina Corporation beats MeetMe on 9 of the 14 factors compared between the two stocks.

Sina Corporation Company Profile

Sina Corporation is an online media company serving China and the global Chinese communities. The Company’s digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile applications) and Weibo (social media) enables Internet users to access professional media and user generated content (UGCs) in multi-media formats from personal computers and mobile devices, and share their interests with friends and acquaintances. The Company’s segments include Portal advertising, Weibo Corporation (Weibo) and Others. SINA.com is an online media property, which provides professional digital contents to users and offers online brand advertising and marketing solutions to customers. Weibo is a social media platform for people to create, distribute and discover Chinese-language content. It offers eReading, a shop for book reviews, as well as complimentary and fee-based online book reading. It offers SINA Blog, a Website in China for bloggers to publish and read original writings.

MeetMe Company Profile

The Meet Group, Inc., formerly MeetMe, Inc., offers a portfolio of mobile applications. The Company operates location-based social networks for meeting new people on mobile platforms, including on iPhone, Android, iPad and other tablets, and on the Web that facilitate interactions among users, and helps users to connect and chat with each other. The Company offers online marketing capabilities, which enable marketers to display their advertisements in different formats and in different locations. The Company holds interest in Skout, Inc. (Skout), which serves as a global mobile network for meeting new people. The Company’s social networking products include Chat, Profile and Friends. Its social discovery products facilitate interactions among members. The Company’s social discovery products include Meet, Discuss and Buzz, and Interested. The Company’s products also include Social Theater.

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