Head-To-Head Analysis: 58.com (WUBA) vs. Leaf Group (DMD)
58.com (NYSE: WUBA) and Leaf Group (NYSE:DMD) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Volatility & Risk
58.com has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500. Comparatively, Leaf Group has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.
Earnings & Valuation
This table compares 58.com and Leaf Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|58.com||$1.31 billion||7.14||$225.01 million||$0.17||378.12|
58.com has higher revenue and earnings than Leaf Group. Leaf Group is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for 58.com and Leaf Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
58.com currently has a consensus target price of $53.10, indicating a potential downside of 17.39%. Leaf Group has a consensus target price of $8.50, indicating a potential upside of 33.86%. Given Leaf Group’s stronger consensus rating and higher probable upside, analysts plainly believe Leaf Group is more favorable than 58.com.
Institutional & Insider Ownership
60.0% of 58.com shares are held by institutional investors. Comparatively, 58.8% of Leaf Group shares are held by institutional investors. 11.9% of 58.com shares are held by insiders. Comparatively, 44.0% of Leaf Group shares are held 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.
This table compares 58.com and Leaf Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
58.com beats Leaf Group on 8 of the 11 factors compared between the two stocks.
58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.
About Leaf Group
Leaf Group Ltd., formerly Demand Media, Inc., is diversified Internet marketplaces and media company. The Company has online media properties and marketplace platforms that enable communities of creators to reach audiences in lifestyle categories. The Company operates an online studio platform for the professional creation and distribution of content, as well as two online artist marketplaces. Its business comprises two service offerings: Content & Media and Marketplaces. The Company creates media content, including text articles, videos, photographs and designed visual formats, and publishes such content to its owned and operated online properties and to its customers’ online properties. The Company also offers its content creation and distribution platform to provide custom content and other content marketing solutions to brands, publishers and advertisers.
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