Bitauto (NYSE: BITA) and IAC/InterActiveCorp (NASDAQ:IAC) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Profitability

This table compares Bitauto and IAC/InterActiveCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bitauto -11.69% -2.10% -0.70%
IAC/InterActiveCorp 11.81% 4.26% 1.98%

Analyst Ratings

This is a summary of current recommendations and price targets for Bitauto and IAC/InterActiveCorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bitauto 0 0 0 0 N/A
IAC/InterActiveCorp 0 1 18 0 2.95

IAC/InterActiveCorp has a consensus target price of $141.47, indicating a potential upside of 15.20%. Given IAC/InterActiveCorp’s higher possible upside, analysts clearly believe IAC/InterActiveCorp is more favorable than Bitauto.

Insider and Institutional Ownership

27.8% of Bitauto shares are held by institutional investors. Comparatively, 86.7% of IAC/InterActiveCorp shares are held by institutional investors. 17.0% of Bitauto shares are held by insiders. Comparatively, 10.6% of IAC/InterActiveCorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Bitauto and IAC/InterActiveCorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bitauto $831.50 million 2.51 -$50.57 million ($2.31) -12.59
IAC/InterActiveCorp $3.14 billion 3.21 -$41.28 million $3.96 31.01

IAC/InterActiveCorp has higher revenue and earnings than Bitauto. Bitauto is trading at a lower price-to-earnings ratio than IAC/InterActiveCorp, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Bitauto has a beta of 3.03, indicating that its stock price is 203% more volatile than the S&P 500. Comparatively, IAC/InterActiveCorp has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Summary

IAC/InterActiveCorp beats Bitauto on 10 of the 12 factors compared between the two stocks.

Bitauto Company Profile

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.

IAC/InterActiveCorp Company Profile

IAC/InterActiveCorp (IAC) is a media and Internet company. The Company’s brands include HomeAdvisor, Vimeo, Dictionary.com and Match Group’s online dating portfolio, which includes Tinder, PlentyOfFish and OkCupid. Its segments include Match Group, HomeAdvisor, Video, Applications and Publishing. Match Group includes the dating and non-dating businesses of Match Group, Inc. HomeAdvisor is a home services digital marketplace that helps connect consumers with home professionals in North America, as well as in France, the Netherlands and Italy under various brands. Its Video consists of Vimeo, Electus, CollegeHumor, Notional, IAC Films and Daily Burn. Applications consists of Consumer, which include its direct-to-consumer downloadable desktop applications, Apalon, which houses its mobile applications and SlimWare, and Partnerships, which includes its business-to-business partnership operations. Publishing consists of Premium Brands business, and Ask & Other business.

Receive News & Ratings for Bitauto Holdings Limited Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bitauto Holdings Limited and related companies with MarketBeat.com's FREE daily email newsletter.