Blucora (NASDAQ: BCOR) and Bitauto Holdings Limited (NYSE:BITA) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitabiliy and institutional ownership.

Profitability

This table compares Blucora and Bitauto Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blucora 2.50% 2.56% 1.37%
Bitauto Holdings Limited -5.11% 3.28% 1.52%

Risk and Volatility

Blucora has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500. Comparatively, Bitauto Holdings Limited has a beta of 3.06, suggesting that its share price is 206% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Blucora and Bitauto Holdings Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blucora 0 1 3 0 2.75
Bitauto Holdings Limited 0 0 2 0 3.00

Blucora currently has a consensus price target of $25.33, indicating a potential upside of 12.59%. Bitauto Holdings Limited has a consensus price target of $34.00, indicating a potential upside of 5.49%. Given Blucora’s higher possible upside, equities analysts plainly believe Blucora is more favorable than Bitauto Holdings Limited.

Institutional and Insider Ownership

83.0% of Blucora shares are held by institutional investors. Comparatively, 18.9% of Bitauto Holdings Limited shares are held by institutional investors. 14.1% of Blucora shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Blucora and Bitauto Holdings Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Blucora $491.58 million 2.06 $92.46 million ($1.02) -22.06
Bitauto Holdings Limited $920.57 million 2.69 $95.14 million ($1.07) -30.12

Bitauto Holdings Limited has higher revenue and earnings than Blucora. Bitauto Holdings Limited is trading at a lower price-to-earnings ratio than Blucora, indicating that it is currently the more affordable of the two stocks.

Summary

Bitauto Holdings Limited beats Blucora on 8 of the 14 factors compared between the two stocks.

About Blucora

Blucora, Inc. is a provider of technology-enabled financial solutions to consumers, small business owners and tax professionals. The Company operates through the Wealth Management and Tax Preparation segments. The Company’s Wealth Management segment consists of HD Vest, which provides financial advisors with an integrated platform of brokerage, investment advisory and insurance services to assist in making each financial advisor a financial service center for his/her clients The Company’s Tax Preparation segment provides digital do-it-yourself (DDIY) tax preparation solutions for consumers, small business owners and tax professionals. TaxAct, a provider of digital tax preparation solutions. HD Vest’s specialized model provides an open-architecture investment platform and technology tools to help financial advisors identify investment opportunities for their clients. TaxAct offers pricing and packaging options for tax professionals.

About Bitauto Holdings Limited

Bitauto Holdings Limited is a provider of Internet content and marketing services for China’s automotive industry. The Company’s bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.

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