Activision Blizzard (NASDAQ: ATVI) and (NASDAQ:SOHU) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitabiliy, institutional ownership and risk.

Insider and Institutional Ownership

87.5% of Activision Blizzard shares are held by institutional investors. Comparatively, 63.1% of shares are held by institutional investors. 2.1% of Activision Blizzard shares are held by insiders. Comparatively, 21.0% of shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.


Activision Blizzard pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. does not pay a dividend. Activision Blizzard pays out 22.7% of its earnings in the form of a dividend.


This table compares Activision Blizzard and’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Activision Blizzard 24.68% 18.42% 9.94% -16.83% -17.02% -10.43%

Valuation and Earnings

This table compares Activision Blizzard and’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Activision Blizzard $6.88 billion 6.67 $2.26 billion $1.32 46.16 $1.62 billion 1.13 $34.28 million ($7.06) -6.66

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

Risk and Volatility

Activision Blizzard has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Activision Blizzard and, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Activision Blizzard 1 3 19 0 2.78 1 3 1 0 2.00

Activision Blizzard presently has a consensus target price of $60.10, suggesting a potential downside of 1.37%. has a consensus target price of $50.10, suggesting a potential upside of 6.60%. Given’s higher probable upside, analysts clearly believe is more favorable than Activision Blizzard.


Activision Blizzard beats on 11 of the 15 factors compared between the two stocks.

Activision Blizzard Company Profile

Activision Blizzard, Inc. is a developer and publisher of interactive entertainment content and services. The Company develops and distributes content and services across various gaming platforms, including video game consoles, personal computers (PC) and mobile devices. Its segments include Activision Publishing, Inc. (Activision), Blizzard Entertainment, Inc. (Blizzard), King Digital Entertainment (King) and Other. Activision is a developer and publisher of interactive software products and content. Blizzard is engaged in developing and publishing of interactive software products and entertainment content, particularly in PC gaming. King is a mobile entertainment company. It is engaged in other businesses, including The Major League Gaming (MLG) business; The Activision Blizzard Studios (Studios) business, and The Activision Blizzard Distribution (Distribution) business. It also develops products spanning other genres, including action/adventure, role-playing and simulation. Company Profile Inc. (Sohu) is an online media, search and game service company, which is engaged in providing online products and services on personal computers (PCs) and mobile devices in the People’s Republic of China (the PRC). The Company operates through three segments: the Sohu segment; the Sogou segment, and the Changyou segment. The Sohu segment’s business is the brand advertising business, which offers to users, over its matrices of Chinese language online media, various content, products and services across multiple Internet-enabled devices, such as PCs, mobile phones and tablets. The search and search-related business primarily offers advertisers pay-for-click services, as well as online marketing services on Web directories operated by Sogou. Changyou’s business lines consist of the online game business; the platform channel business, which consists primarily of online advertising and also includes Internet value-added services (IVAS), and the cinema advertising business.

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