Critical Contrast: Autohome (NYSE:ATHM) & Reddit (NYSE:RDDT)

Reddit (NYSE:RDDT) and Autohome (NYSE:ATHM) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Reddit and Autohome”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reddit	$1.12 billion	25.82	-$90.82 million	N/A	N/A
Autohome	$7.30 billion	0.43	$286.40 million	$2.01	12.91

Autohome has higher revenue and earnings than Reddit.

Analyst Recommendations

This is a breakdown of recent recommendations for Reddit and Autohome, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	1	5	14	1	2.71
Autohome	0	4	0	1	2.40

Reddit currently has a consensus price target of $148.25, suggesting a potential downside of 10.17%. Autohome has a consensus price target of $28.00, suggesting a potential upside of 7.94%. Given Autohome’s higher possible upside, analysts clearly believe Autohome is more favorable than Reddit.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reddit	-47.83%	-40.54%	-27.32%
Autohome	24.36%	7.79%	6.07%

Summary

Autohome beats Reddit on 8 of the 11 factors compared between the two stocks.

About Reddit

Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

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.