Critical Analysis: Autohome (NYSE:ATHM) versus DouYu International (NASDAQ:DOYU)

Autohome (NYSE:ATHM) and DouYu International (NASDAQ:DOYU) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Earnings and Valuation

This table compares Autohome and DouYu International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autohome	$7.30 billion	0.50	$286.40 million	$2.11	13.74
DouYu International	$4.73 billion	0.07	$5.00 million	($0.60)	-18.43

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Autohome	25.81%	8.19%	6.35%
DouYu International	-2.63%	-0.97%	-0.80%

Risk & Volatility

Autohome has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Insider and Institutional Ownership

63.1% of Autohome shares are held by institutional investors. Comparatively, 17.9% of DouYu International shares are held by institutional investors. 5.7% of Autohome shares are held by company insiders. Comparatively, 17.3% of DouYu International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Autohome and DouYu International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autohome	0	3	0	1	2.50
DouYu International	2	1	0	0	1.33

Autohome presently has a consensus price target of $28.00, indicating a potential downside of 3.45%. DouYu International has a consensus price target of $10.25, indicating a potential downside of 7.32%. Given Autohome’s stronger consensus rating and higher probable upside, analysts clearly believe Autohome is more favorable than DouYu International.

Summary

Autohome beats DouYu International on 12 of the 14 factors compared between the two stocks.

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.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.