Financial Contrast: 58.com (WUBA) & Bitauto Holdings Limited (BITA)
58.com (NYSE: WUBA) and Bitauto Holdings Limited (NYSE:BITA) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.
Earnings and Valuation
This table compares 58.com and Bitauto Holdings Limited’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|58.com||$1.32 billion||7.37||$227.43 million||$0.17||393.18|
|Bitauto Holdings Limited||$1.06 billion||3.03||$104.54 million||($1.21)||-38.00|
58.com has higher revenue and earnings than Bitauto Holdings Limited. Bitauto Holdings Limited 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 table compares 58.com and Bitauto Holdings Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bitauto Holdings Limited||-4.76%||3.85%||1.60%|
Institutional and Insider Ownership
60.0% of 58.com shares are owned by institutional investors. Comparatively, 19.7% of Bitauto Holdings Limited shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
58.com has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, Bitauto Holdings Limited has a beta of 3.01, meaning that its share price is 201% more volatile than the S&P 500.
This is a breakdown of current ratings for 58.com and Bitauto Holdings Limited, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bitauto Holdings Limited||0||0||1||0||3.00|
58.com currently has a consensus price target of $53.10, indicating a potential downside of 20.56%. Bitauto Holdings Limited has a consensus price target of $33.00, indicating a potential downside of 28.23%. Given 58.com’s higher probable upside, analysts clearly believe 58.com is more favorable than Bitauto Holdings Limited.
58.com beats Bitauto Holdings Limited on 9 of the 13 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 Bitauto Holdings Limited
Bitauto Holdings Limited is a provider of Internet content and marketing services for China’s automotive industry. The Company’s bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.
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