SEA (NYSE: SE) and Sito Mobile (NASDAQ:SITO) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Insider & Institutional Ownership

68.7% of SEA shares are owned by institutional investors. Comparatively, 12.5% of Sito Mobile shares are owned by institutional investors. 0.2% of SEA shares are owned by insiders. Comparatively, 6.5% of Sito Mobile shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares SEA and Sito Mobile’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SEA N/A N/A N/A N/A N/A
Sito Mobile $29.43 million 4.87 -$1.40 million ($0.51) -12.76

SEA has higher earnings, but lower revenue than Sito Mobile.

Analyst Ratings

This is a breakdown of current recommendations for SEA and Sito Mobile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SEA 0 0 6 0 3.00
Sito Mobile 0 2 4 0 2.67

SEA presently has a consensus target price of $18.67, indicating a potential upside of 50.17%. Sito Mobile has a consensus target price of $8.60, indicating a potential upside of 32.10%. Given SEA’s stronger consensus rating and higher probable upside, analysts plainly believe SEA is more favorable than Sito Mobile.

Profitability

This table compares SEA and Sito Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SEA -90.49% N/A -39.28%
Sito Mobile -29.34% -47.82% -25.15%

Summary

SEA beats Sito Mobile on 5 of the 9 factors compared between the two stocks.

About SEA

Sea Limited, formerly Garena Interactive Holding Limited, is a Singapore-based Internet and mobile platform company. The Company is a platform provider for online personal computer (PC) and mobile digital content, e-commerce and payments across Asia. The Company offers Garena+, an online platform for people to meet, chat and play games with each other. Its digital content offers Garena, which is a game and social platform for gamers to interact, discover, download and play PC and mobile games. PC games on Garena Platform include Point Blank, Path of Exile, Mstar Online, League of Legends, Heroes of Newerth, Alliance of Valiant Arms, Mabinogi Heroes and Lost Saga. Mobile Games on Garena Platform include Headshot and Thunder Strike. Its ESports Events include Garena Premier League, Garena Carnival, Garena Cyber Games, Garena Star League and League of Legends Master Series. Its e-commerce offers Shopee, a mobile marketplace, where users can browse, shop and sell their products.

About Sito Mobile

SITO Mobile, Ltd. operates a mobile location-based advertising platform serving businesses, advertisers and brands. The Company’s offerings include SITO Location-Based Advertising and SITO Mobile Messaging. SITO Location-Based Advertising delivers display advertisements and videos on behalf of advertisers, including various features, such as Geo-fencing, Verified walk-in, Behavioral Targeting, and Analytics and Optimization. Geo-fencing targets customers within a certain radius of location and uses technology to push coupons, advertisements and promotions to mobile applications. Verified Walk-in tracks foot-traffic to locations and which advertisements drive action. Behavioral Targeting tracks past behaviors over 30 to 90 day increments allowing for real-time campaign management. Analytics and Optimization is a culling and building measurement system. SITO Mobile Messaging is a platform for building and controlling programs, including messaging and customer incentive programs.

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