Analyzing Weibo (NASDAQ:WB) and Relx (NYSE:RELX)

Relx (NYSE:RELX) and Weibo (NASDAQ:WB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Dividends

Relx pays an annual dividend of $0.53 per share and has a dividend yield of 1.3%. Weibo pays an annual dividend of $0.80 per share and has a dividend yield of 7.7%. Weibo pays out 45.5% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Relx and Weibo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Relx	$12.06 billion	6.10	$2.47 billion	N/A	N/A
Weibo	$1.75 billion	1.45	$300.80 million	$1.76	5.92

Relx has higher revenue and earnings than Weibo.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Relx and Weibo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relx	0	1	4	1	3.00
Weibo	0	1	1	0	2.50

Weibo has a consensus price target of $14.00, suggesting a potential upside of 34.36%. Given Weibo’s higher probable upside, analysts plainly believe Weibo is more favorable than Relx.

Volatility & Risk

Relx has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Weibo has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Insider and Institutional Ownership

15.0% of Relx shares are held by institutional investors. Comparatively, 68.8% of Weibo shares are held by institutional investors. 0.0% of Relx shares are held by insiders. Comparatively, 41.3% of Weibo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Relx and Weibo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relx	N/A	N/A	N/A
Weibo	26.58%	11.79%	6.46%

Summary

Relx beats Weibo on 8 of the 15 factors compared between the two stocks.

About Relx

RELX Plc engages in provision of information and analytics solutions for professional and business customers across industries. It operates through the following business segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal; and Exhibitions. The Scientific, Technical & Medical segment is a global information analytics business that helps institutions and professionals advance healthcare, open science, and improve performance for the benefit of humanity. The Risk & Business Analytics segment provides customers with solutions and decision tools that combine public and industry specific content with advanced technology and analytics to assist them in evaluating and predicting risk and enhancing operational efficiency. The Legal segment is a global provider of legal, regulatory and business information and analytics that helps customers increase productivity, improve decision-making and outcomes and advance the rule of law around the world. The Exhibitions segment is an event business, enhancing the effect of face-to-face through data and digital tools. The company was founded by Albert Edward Reed in 1903 and is headquartered in London, the United Kingdom.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user’s trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product services for better displaying and promotion of its account and content; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, the People’s Republic of China.