Tucows (NASDAQ: TCX) and 58.com (NYSE:WUBA) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Insider and Institutional Ownership

43.9% of Tucows shares are owned by institutional investors. Comparatively, 60.0% of 58.com shares are owned by institutional investors. 13.2% of Tucows shares are owned by company insiders. Comparatively, 11.9% of 58.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Tucows has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, 58.com has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500.

Earnings and Valuation

This table compares Tucows and 58.com’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tucows $251.66 million 2.14 $29.37 million $1.43 35.63
58.com $1.31 billion 7.11 $225.01 million $0.17 376.29

58.com has higher revenue and earnings than Tucows. Tucows is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tucows and 58.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tucows 6.06% 41.65% 6.52%
58.com 2.14% 1.04% 0.72%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tucows and 58.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tucows 0 0 0 0 N/A
58.com 3 4 6 0 2.23

58.com has a consensus price target of $53.10, suggesting a potential downside of 16.99%. Given 58.com’s higher probable upside, analysts plainly believe 58.com is more favorable than Tucows.

Summary

58.com beats Tucows on 8 of the 13 factors compared between the two stocks.

About Tucows

Tucows Inc. is engaged in providing Internet services. The Company’s segments include Network Access Services and Domain Services. The Network Access Services segment includes mobile, fixed high-speed Internet access services, Internet hosting and network consulting services. The Domain Services segment wholesale and retail domain name registration services, value added services and portfolio services. The Company focuses on serving the needs of this network of resellers by providing services, interfaces, proactive and attentive customer service, reseller-oriented technology and agile design and development processes. The Company focuses its service offerings under brands, including OpenSRS, YummyNames, Platypus, Hover and Ting. As of December 31, 2016, the OpenSRS Domain Service managed 15 million domain names under the Tucows ICANN registrar accreditation and for other registrars. As of December 31, 2016, Ting managed mobile telephony services for approximately 151,000 subscribers.

About 58.com

58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.

Receive News & Ratings for Tucows Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tucows Inc. and related companies with MarketBeat.com's FREE daily email newsletter.