Live Ventures (LIVE) versus Autohome (ATHM) Critical Survey

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

Profitability

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

Net Margins Return on Equity Return on Assets
Live Ventures 4.28% 20.63% 5.24%
Autohome 25.52% 23.48% 16.58%

Institutional & Insider Ownership

6.2% of Live Ventures shares are owned by institutional investors. Comparatively, 39.6% of Autohome shares are owned by institutional investors. 64.9% of Live Ventures shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Live Ventures and Autohome, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Live Ventures 0 0 0 0 N/A
Autohome 0 0 4 0 3.00

Autohome has a consensus price target of $74.95, suggesting a potential downside of 2.17%. Given Autohome’s higher probable upside, analysts clearly believe Autohome is more favorable than Live Ventures.

Earnings & Valuation

This table compares Live Ventures and Autohome’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Live Ventures $152.06 million 0.17 $6.50 million $1.69 7.69
Autohome $338.13 million 26.77 $176.85 million $2.32 33.02

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

Risk & Volatility

Live Ventures has a beta of -3.65, meaning that its stock price is 465% less volatile than the S&P 500. Comparatively, Autohome has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500.

Summary

Autohome beats Live Ventures on 12 of the 13 factors compared between the two stocks.

About Live Ventures

Live Ventures Incorporated is a holding company for diversified businesses. The Company’s segments include Manufacturing Segment, Marketplace Platform Segment and Services Segment. The Manufacturing Segment consists of Marquis Industries, Inc. The Marketplace Platform segment consists of livedeal.com and Modern Everyday, Inc. The Services Segment consists of the local exchange carrier billings business and velocity local. It operates LiveDeal.com, a real-time deal engine that connects restaurants across the United States and consumers through an online mobile platform. It is focused on the residential, commercial and hospitality end-markets. As of September 30, 2016, the Company operated its business through 13 divisions, each specializing in a distinct area of the business, such as Best Buy flooring Source, Marquis Carpet, Best Buy Hard surface, A-O Industries, Quantum Textiles and B and H Tufters.

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.

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