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

Institutional & Insider Ownership

68.7% of Angie’s List shares are owned by institutional investors. Comparatively, 60.9% of 58.com shares are owned by institutional investors. 18.2% of Angie’s List shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

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

Angie’s List presently has a consensus target price of $11.91, indicating a potential upside of 3.44%. 58.com has a consensus target price of $50.63, indicating a potential downside of 30.09%. Given Angie’s List’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Angie’s List is more favorable than 58.com.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Angie’s List $323.33 million 2.23 -$7.85 million ($0.12) -95.91
58.com $1.14 billion 9.29 -$110.71 million $0.74 97.85

Angie’s List has higher earnings, but lower revenue 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.

Volatility and Risk

Angie’s List has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, 58.com has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500.

Profitability

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

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

Summary

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

About Angie’s List

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.

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.

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