Analyzing Sina Corporation (SINA) & Renren (RENN)
Sina Corporation (NASDAQ: SINA) and Renren (NYSE:RENN) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
This is a breakdown of current recommendations and price targets for Sina Corporation and Renren, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sina Corporation presently has a consensus price target of $104.08, suggesting a potential downside of 10.53%. Given Sina Corporation’s higher possible upside, analysts plainly believe Sina Corporation is more favorable than Renren.
Insider & Institutional Ownership
67.0% of Sina Corporation shares are held by institutional investors. Comparatively, 2.6% of Renren shares are held by institutional investors. 7.4% of Sina Corporation shares are held by insiders. Comparatively, 42.4% of Renren shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Sina Corporation and Renren’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Sina Corporation has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Renren has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
Valuation & Earnings
This table compares Sina Corporation and Renren’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sina Corporation||$1.23 billion||6.73||$265.15 million||$3.00||38.78|
|Renren||$81.49 million||6.78||-$67.85 million||($2.21)||-3.65|
Sina Corporation has higher revenue and earnings than Renren. Renren is trading at a lower price-to-earnings ratio than Sina Corporation, indicating that it is currently the more affordable of the two stocks.
Sina Corporation beats Renren on 10 of the 12 factors compared between the two stocks.
Sina Corporation Company Profile
Sina Corporation is an online media company serving China and the global Chinese communities. The Company’s digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile applications) and Weibo (social media) enables Internet users to access professional media and user generated content (UGCs) in multi-media formats from personal computers and mobile devices, and share their interests with friends and acquaintances. The Company’s segments include Portal advertising, Weibo Corporation (Weibo) and Others. SINA.com is an online media property, which provides professional digital contents to users and offers online brand advertising and marketing solutions to customers. Weibo is a social media platform for people to create, distribute and discover Chinese-language content. It offers eReading, a shop for book reviews, as well as complimentary and fee-based online book reading. It offers SINA Blog, a Website in China for bloggers to publish and read original writings.
Renren Company Profile
Renren Inc. operates a real name social networking Internet platform in China. The Company enables users to connect and communicate with each other, share photos, and various features and services. The Company is developing Internet finance business to leverage its social networking services and user base in China, particularly focusing on the audience of college students and young people in China. The Company operates through two segments: Renren and Internet finance. The Company’s Renren segment focuses on online advertising and Internet value-added services (IVAS). The Company’s Internet finance segment includes Renren Fenqi, an online platform, which provides credit financing to college students in China through the form of payment by installments; its used automobile financing business, which provides credit financing to used automobile dealers, and Renren Licai, a financing and lending platform.
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