Weibo Corporation (NASDAQ: WB) and TrueCar (NASDAQ:TRUE) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Profitability

This table compares Weibo Corporation and TrueCar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weibo Corporation 23.22% 25.65% 18.45%
TrueCar -9.86% -11.83% -8.99%

Analyst Ratings

This is a summary of recent ratings and price targets for Weibo Corporation and TrueCar, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weibo Corporation 0 0 7 0 3.00
TrueCar 1 2 7 0 2.60

Weibo Corporation presently has a consensus target price of $78.71, suggesting a potential downside of 8.32%. TrueCar has a consensus target price of $18.50, suggesting a potential upside of 15.26%. Given TrueCar’s higher possible upside, analysts plainly believe TrueCar is more favorable than Weibo Corporation.

Institutional & Insider Ownership

16.6% of Weibo Corporation shares are owned by institutional investors. Comparatively, 84.6% of TrueCar shares are owned by institutional investors. 17.3% of TrueCar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Weibo Corporation has a beta of 2.66, indicating that its stock price is 166% more volatile than the S&P 500. Comparatively, TrueCar has a beta of 2.97, indicating that its stock price is 197% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Weibo Corporation N/A N/A N/A $0.87 98.69
TrueCar $306.80 million 5.15 -$16.51 million ($0.35) -45.86

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

Weibo Corporation Company Profile

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

TrueCar Company Profile

TrueCar, Inc. is an Internet-based information, technology, and communication services company. The Company has a data-driven online platform, which features market data and analytics. The Company-branded platform is available on its TrueCar Website and mobile applications. It customizes and operates its platform on a co-branded basis for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for a range of enterprises. The Company enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar Certified Dealers. Its network of over 13,000 TrueCar Certified Dealers consists primarily of new car franchises, as well as independent dealers selling used vehicles. Its subsidiary, ALG, Inc., provides forecasts and consulting services regarding determination of the residual value of an automobile at given future points in time.

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