Reviewing Autohome (NYSE:ATHM) and KE (NYSE:BEKE)

Autohome (NYSE:ATHM) and KE (NYSE:BEKE) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares Autohome and KE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Autohome	17.91%	5.01%	4.01%
KE	3.77%	5.47%	3.10%

Institutional and Insider Ownership

63.1% of Autohome shares are held by institutional investors. Comparatively, 39.3% of KE shares are held by institutional investors. 5.7% of Autohome shares are held by insiders. Comparatively, 6.8% of KE shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Autohome pays an annual dividend of $1.75 per share and has a dividend yield of 9.6%. KE pays an annual dividend of $0.23 per share and has a dividend yield of 1.4%. Autohome pays out 133.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KE pays out 54.8% of its earnings in the form of a dividend.

Volatility and Risk

Autohome has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, KE has a beta of -0.36, indicating that its share price is 136% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Autohome and KE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autohome	1	4	0	0	1.80
KE	0	1	6	0	2.86

Autohome presently has a consensus target price of $17.15, indicating a potential downside of 5.70%. KE has a consensus target price of $23.07, indicating a potential upside of 36.29%. Given KE’s stronger consensus rating and higher possible upside, analysts clearly believe KE is more favorable than Autohome.

Earnings and Valuation

This table compares Autohome and KE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autohome	$922.63 million	2.27	$225.19 million	$1.31	13.88
KE	$13.52 billion	1.40	$428.13 million	$0.42	40.30

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

Summary

KE beats Autohome on 9 of the 16 factors compared between the two stocks.

About Autohome

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company offers Autohome Mall, an online transaction platform; and online bidding platform for used automobiles, as well as collects commissions for facilitating transactions of auto-financing and insurance products on its platform. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the People’s Republic of China.

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.