Financial Review: Autohome (NYSE:ATHM) versus Bright Mountain Media (OTCMKTS:BMTM)

Bright Mountain Media (OTCMKTS:BMTM) and Autohome (NYSE:ATHM) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Analyst Recommendations

This is a summary of recent ratings for Bright Mountain Media and Autohome, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bright Mountain Media	0	0	0	0	0.00
Autohome	0	3	0	0	2.00

Autohome has a consensus price target of $28.00, indicating a potential upside of 21.07%. Given Autohome’s stronger consensus rating and higher probable upside, analysts clearly believe Autohome is more favorable than Bright Mountain Media.

Profitability

This table compares Bright Mountain Media and Autohome’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bright Mountain Media	-23.00%	N/A	-34.88%
Autohome	21.62%	6.72%	5.35%

Earnings & Valuation

This table compares Bright Mountain Media and Autohome”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bright Mountain Media	$56.68 million	0.02	-$17.02 million	($0.08)	-0.09
Autohome	$964.42 million	2.80	$245.52 million	$1.70	13.60

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

Risk and Volatility

Bright Mountain Media has a beta of 124.39, meaning that its stock price is 12,339% more volatile than the S&P 500. Comparatively, Autohome has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Insider & Institutional Ownership

63.1% of Autohome shares are owned by institutional investors. 61.6% of Bright Mountain Media shares are owned by company insiders. Comparatively, 5.7% of Autohome shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Autohome beats Bright Mountain Media on 11 of the 13 factors compared between the two stocks.

About Bright Mountain Media

Bright Mountain Media, Inc. provides an end-to-end digital media and advertising services platform that connects brands with targeted consumer demographics in the United States and Israel. It focuses on digital publishing comprising websites, including Mom.com, Cafemom.com, LittleThings.com, and MamasLatinas.com; and advertising technology, consumer insights, creative, and media services. The company serves advertisers, advertising agencies and advertising service organizations. The company was formerly known as Bright Mountain Acquisition Corporation and changed its name to Bright Mountain Media, Inc. in December 2015. Bright Mountain Media, Inc. is based in Boca Raton, Florida.

About Autohome

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company offers Autohome Mall, an online transaction platform; and online bidding platform for used automobiles, as well as collects commissions for facilitating transactions of auto-financing and insurance products on its platform. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the People’s Republic of China.