58.com (NYSE: WUBA) and Angie’s List (NASDAQ:ANGI) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Risk and Volatility

58.com has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500. Comparatively, Angie’s List has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Institutional & Insider Ownership

61.0% of 58.com shares are owned by institutional investors. Comparatively, 68.7% of Angie’s List shares are owned by institutional investors. 18.2% of Angie’s List shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for 58.com and Angie’s List, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
58.com 3 3 5 0 2.18
Angie’s List 1 4 5 0 2.40

58.com presently has a consensus price target of $50.63, suggesting a potential downside of 33.20%. Angie’s List has a consensus price target of $11.91, suggesting a potential downside of 0.20%. Given Angie’s List’s stronger consensus rating and higher probable upside, analysts plainly believe Angie’s List is more favorable than 58.com.

Profitability

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

Net Margins Return on Equity Return on Assets
58.com 7.93% 4.08% 2.80%
Angie’s List -17.04% -25.20% -14.67%

Valuation & Earnings

This table compares 58.com and Angie’s List’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
58.com $1.14 billion 9.72 -$110.71 million $0.74 102.42
Angie’s List $323.33 million 2.31 -$7.85 million ($0.12) -99.41

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

Summary

58.com beats Angie’s List on 7 of the 12 factors compared between the two stocks.

58.com Company Profile

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.

Angie’s List Company Profile

ANGI Homeservices Inc. is focused on creating digital marketplace for home services, connecting homeowners across the globe with home service professionals. The Company operates 10 brands including Angie’s List, HomeAdvisor, HomeStars, Instapro, MyBuilder, MyHammer, Travaux, Werkspot, CraftJack and mHelpDesk. The Company’s brand portfolio provides homeowners with tools and resources for home repair, maintenance and improvement projects. Angie’s List is America’s online review platform and provides services ranging from home repair, maintenance and improvement to auto service and health care. HomeAdvisor is the operator of the home services marketplace across the globe. HomeStars is online platform connecting homeowners with home renovators, repairmen and retailers throughout Canada. Instapro is Italy’s home services network connecting homeowners with service professionals for home renovation projects.

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