iDreamSky Technology (NASDAQ: DSKY) and Telenav (NASDAQ:TNAV) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitabiliy, risk, earnings, valuation and institutional ownership.

Volatility and Risk

iDreamSky Technology has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, Telenav has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Profitability

This table compares iDreamSky Technology and Telenav’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iDreamSky Technology -1.50% -1.80% -1.34%
Telenav -23.98% -26.30% -16.17%

Valuation and Earnings

This table compares iDreamSky Technology and Telenav’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
iDreamSky Technology N/A N/A N/A N/A N/A
Telenav $177.05 million 2.01 -$29.19 million ($0.98) -8.32

iDreamSky Technology has higher revenue, but lower earnings than Telenav.

Analyst Ratings

This is a summary of recent ratings for iDreamSky Technology and Telenav, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iDreamSky Technology 0 0 0 0 N/A
Telenav 0 0 4 0 3.00

Telenav has a consensus price target of $12.75, suggesting a potential upside of 56.44%. Given Telenav’s higher possible upside, analysts clearly believe Telenav is more favorable than iDreamSky Technology.

Insider and Institutional Ownership

51.7% of Telenav shares are owned by institutional investors. 24.6% of Telenav shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Telenav beats iDreamSky Technology on 5 of the 9 factors compared between the two stocks.

iDreamSky Technology Company Profile

iDreamSky Technology Limited is a holding company. The Company, through its subsidiaries, and its variable interest entities (VIEs) is principally engaged in the licensing and operating of single player mobile games and mobile online games (the listing business) in the People’s Republic of China. The Company is an independent mobile game publishing platform in China. The Company also operates games as a service, where it offers live game services, engages in live user communications and gains user insights through its multi-dimensional data analysis engine to drive ongoing game optimization and monetization. The Company provides its users with live game services and connects them through friend lists, message boards, leaderboards and user tournaments, enabling in-game interaction and social networking. Its platform offers a range of services, including game redesign and porting, ongoing optimization, marketing, distribution, monetization, payment support and user-related services.

Telenav Company Profile

TeleNav, Inc. (Telenav) is a provider of location-based platform services. The Company’s services consist of its automotive and mobile navigation platform and its advertising delivery platform. The Company operates through three segments: automotive, advertising and mobile navigation. The automotive segment provides its map and navigation platform to auto manufacturers and original equipment manufacturers (OEMs) for distribution with their vehicles. The advertising segment provides interactive mobile advertisements on behalf of its advertising clients to consumers based on the location of the user and other targeting capabilities. The mobile navigation segment provides its map and navigation platform to end users through mobile devices. The Company’s auto and mobile navigation platform allows it to deliver location-based services to auto manufacturers, developers and end users through various distribution channels, including wireless carriers.

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