Head to Head Comparison: Autohome (ATHM) & NIC (EGOV)

Autohome (NYSE: ATHM) and NIC (NASDAQ:EGOV) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Risk and Volatility

Autohome has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500. Comparatively, NIC has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Profitability

This table compares Autohome and NIC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autohome 25.52% 23.48% 16.58%
NIC 16.42% 36.89% 22.03%

Earnings & Valuation

This table compares Autohome and NIC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Autohome $338.13 million 27.23 $176.85 million $2.24 34.79
NIC $317.92 million 3.64 $55.83 million $0.82 21.28

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

Dividends

NIC pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. Autohome does not pay a dividend. NIC pays out 39.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

38.8% of Autohome shares are owned by institutional investors. Comparatively, 93.2% of NIC shares are owned by institutional investors. 4.1% of NIC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Autohome and NIC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autohome 0 0 4 0 3.00
NIC 1 4 1 0 2.00

Autohome currently has a consensus target price of $74.95, indicating a potential downside of 3.81%. NIC has a consensus target price of $19.33, indicating a potential upside of 10.79%. Given NIC’s higher possible upside, analysts clearly believe NIC is more favorable than Autohome.

Summary

Autohome beats NIC on 10 of the 16 factors compared between the two stocks.

About Autohome

Autohome Inc. is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry. The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. The Company’s professionally produced content is created by editorial team and includes automobile-related articles and reviews, pricing trends in various local markets, and photos and video clips. Its database also includes new and used automobile listings and promotional information. Its dealer subscription services allow dealers to market their inventory and services through its Websites.

About NIC

NIC Inc. is a provider of digital government services that help governments use technology to provide services to businesses and citizens. The Company operates through Outsourced Portals segment. The Company offers its services through two channels: primary outsourced portal businesses, and software and services businesses. In the primary outsourced portal businesses, the Company enters into contracts with state and local governments to design, build, and operate Internet-based, enterprise-wide portals on their behalf. Its software and services businesses include its subsidiaries that provide software development and payment processing services, other than outsourced portal services, to state and local governments, as well as federal agencies. The Company’s outsourced portal businesses include interactive government services (IGS), driver history records (DHR), Portal software development and services, and Portal management.

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