SouFun Holdings Limited (NYSE: SFUN) and Tremor Video (NYSE:TLRA) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Valuation & Earnings

This table compares SouFun Holdings Limited and Tremor Video’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SouFun Holdings Limited $644.69 million 2.77 $9.32 million ($0.06) -68.33
Tremor Video N/A N/A N/A ($0.27) -17.78

SouFun Holdings Limited has higher revenue and earnings than Tremor Video. SouFun Holdings Limited is trading at a lower price-to-earnings ratio than Tremor Video, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

46.9% of SouFun Holdings Limited shares are owned by institutional investors. Comparatively, 39.7% of Tremor Video shares are owned by institutional investors. 8.2% of Tremor Video shares are owned by company 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

SouFun Holdings Limited has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Tremor Video has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SouFun Holdings Limited and Tremor Video, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SouFun Holdings Limited 2 3 2 0 2.00
Tremor Video 0 1 2 0 2.67

SouFun Holdings Limited presently has a consensus target price of $3.63, indicating a potential downside of 11.56%. Tremor Video has a consensus target price of $4.13, indicating a potential downside of 14.06%. Given SouFun Holdings Limited’s higher probable upside, equities analysts plainly believe SouFun Holdings Limited is more favorable than Tremor Video.

Profitability

This table compares SouFun Holdings Limited and Tremor Video’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SouFun Holdings Limited -4.57% -8.80% -2.74%
Tremor Video -7.11% -16.72% -8.96%

Summary

SouFun Holdings Limited beats Tremor Video on 8 of the 10 factors compared between the two stocks.

SouFun Holdings Limited Company Profile

Fang Holdings Limited, formerly SouFun Holdings Limited, operates as a real estate Internet portal in China. The Company’s Websites and mobile applications support active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors in China. The Company, through its Internet platform, is engaged in the development of transaction and financing platforms by offering direct sales services for new homes, online real estate brokerage services and financial services. The Company’s service offerings include marketing services, E-commerce services, listing services, Financial services and other value-added services. The Company provides secured loans in the form of entrusted loans and mortgage loans and unsecured loans primarily to home buyers, real estate developers and other borrowers that meet its credit assessment requirements.

Tremor Video Company Profile

Trulia, Inc. is a real estate search engine company. The Company’s marketplace, delivered through the web and mobile applications, gives consumers tools to research homes and neighborhoods and enables real estate professionals to market their listings and attract new clients. The Company also offers a suite of free and subscription products that provide real estate professionals with access to transaction-ready consumers and help them to grow and manage their online presence. For the year ended December 31, 2013, the Company had 38.8 million monthly unique visitors. As at December 31, 2013, the Company had more than 437,000 active real estate professionals in its Trulia marketplace and 157,000 active real estate professionals using its Market Leader software and services. Approximately 59,700 of these real estate professionals were paying subscribers (assuming 20% overlap between Trulia subscribers and Marker Leader’s premium subscribers).

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