Critical Survey: Xunlei (NASDAQ:XNET) & CyberAgent (OTCMKTS:CYAGF)

Xunlei (NASDAQ:XNET) and CyberAgent (OTCMKTS:CYAGF) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Xunlei has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Valuation & Earnings

This table compares Xunlei and CyberAgent”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xunlei	$462.41 million	0.86	$1.05 billion	$16.43	0.39
CyberAgent	$5.86 billion	0.69	$212.17 million	$0.50	15.92

Xunlei has higher earnings, but lower revenue than CyberAgent. Xunlei is trading at a lower price-to-earnings ratio than CyberAgent, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xunlei and CyberAgent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xunlei	227.29%	1.41%	1.17%
CyberAgent	4.31%	16.76%	8.48%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Xunlei and CyberAgent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xunlei	0	1	0	0	2.00
CyberAgent	0	0	0	0	0.00

Institutional and Insider Ownership

5.1% of Xunlei shares are held by institutional investors. 21.7% of Xunlei shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Xunlei beats CyberAgent on 8 of the 12 factors compared between the two stocks.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.