Head to Head Analysis: Activision Blizzard (NASDAQ:ATVI) and Sohu.com (SOHU)
Activision Blizzard (NASDAQ: ATVI) and Sohu.com (NASDAQ:SOHU) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitabiliy.
This table compares Activision Blizzard and Sohu.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Activision Blizzard and Sohu.com’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Activision Blizzard||$6.88 billion||6.86||$2.26 billion||$1.32||47.45|
|Sohu.com||$1.62 billion||1.19||$34.28 million||($7.06)||-7.03|
Activision Blizzard has higher revenue and earnings than Sohu.com. Sohu.com is trading at a lower price-to-earnings ratio than Activision Blizzard, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
87.5% of Activision Blizzard shares are held by institutional investors. Comparatively, 63.1% of Sohu.com shares are held by institutional investors. 2.1% of Activision Blizzard shares are held by insiders. Comparatively, 21.0% of Sohu.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Activision Blizzard has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Sohu.com has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.
Activision Blizzard pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. Sohu.com does not pay a dividend. Activision Blizzard pays out 22.7% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations for Activision Blizzard and Sohu.com, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Activision Blizzard presently has a consensus target price of $60.78, indicating a potential downside of 2.97%. Sohu.com has a consensus target price of $50.10, indicating a potential upside of 0.89%. Given Sohu.com’s higher possible upside, analysts plainly believe Sohu.com is more favorable than Activision Blizzard.
Activision Blizzard beats Sohu.com on 11 of the 15 factors compared between the two stocks.
Activision Blizzard Company Profile
Activision Blizzard, Inc. is a developer and publisher of interactive entertainment content and services. The Company develops and distributes content and services across various gaming platforms, including video game consoles, personal computers (PC) and mobile devices. Its segments include Activision Publishing, Inc. (Activision), Blizzard Entertainment, Inc. (Blizzard), King Digital Entertainment (King) and Other. Activision is a developer and publisher of interactive software products and content. Blizzard is engaged in developing and publishing of interactive software products and entertainment content, particularly in PC gaming. King is a mobile entertainment company. It is engaged in other businesses, including The Major League Gaming (MLG) business; The Activision Blizzard Studios (Studios) business, and The Activision Blizzard Distribution (Distribution) business. It also develops products spanning other genres, including action/adventure, role-playing and simulation.
Sohu.com Company Profile
Sohu.com Inc. (Sohu) is an online media, search and game service company, which is engaged in providing online products and services on personal computers (PCs) and mobile devices in the People’s Republic of China (the PRC). The Company operates through three segments: the Sohu segment; the Sogou segment, and the Changyou segment. The Sohu segment’s business is the brand advertising business, which offers to users, over its matrices of Chinese language online media, various content, products and services across multiple Internet-enabled devices, such as PCs, mobile phones and tablets. The search and search-related business primarily offers advertisers pay-for-click services, as well as online marketing services on Web directories operated by Sogou. Changyou’s business lines consist of the online game business; the platform channel business, which consists primarily of online advertising and also includes Internet value-added services (IVAS), and the cinema advertising business.
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