Analyzing QuoteMedia (OTCMKTS:QMCI) & Weibo (NASDAQ:WB)

QuoteMedia (OTCMKTS:QMCI) and Weibo (NASDAQ:WB) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Profitability

This table compares QuoteMedia and Weibo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuoteMedia	-11.64%	N/A	-40.59%
Weibo	21.15%	9.90%	5.52%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for QuoteMedia and Weibo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuoteMedia	0	1	0	0	2.00
Weibo	2	0	2	0	2.00

Weibo has a consensus price target of $11.90, suggesting a potential upside of 46.01%. Given Weibo’s higher possible upside, analysts clearly believe Weibo is more favorable than QuoteMedia.

Insider and Institutional Ownership

68.8% of Weibo shares are held by institutional investors. 47.1% of QuoteMedia shares are held by company insiders. Comparatively, 41.3% of Weibo shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

QuoteMedia has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Weibo has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Valuation and Earnings

This table compares QuoteMedia and Weibo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuoteMedia	$20.25 million	0.67	-$2.32 million	($0.03)	-5.00
Weibo	$1.76 billion	1.14	$449.02 million	$1.43	5.70

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

Summary

Weibo beats QuoteMedia on 12 of the 13 factors compared between the two stocks.

About QuoteMedia

QuoteMedia, Inc. provides financial data, market research information, analytics, news feeds, and financial software solutions to online brokerages, banks, clearing firms, financial service companies, media portals, and public corporations worldwide. It collects, aggregates, and delivers delayed and real-time financial data content through the Internet. The company also offers market information and services, including streaming stock market data feeds, research and analysis information, content applications, portfolio management systems, software products, corporate investor relations provisioning, news services, mobile apps, and custom development. In addition, its data feeds coverage includes equities, options, futures, commodities, currencies, mutual funds, ETFs, and indices. Further, the company provides financial data delivery application products and components comprising quote modules, charts, market movers, news, watch lists, tickers, market summaries, option chains, filings, fundamentals, investor relations solutions, stock and fund screeners, and others; and QMod, a web delivery system for delivering market data content to Web platforms. Additionally, it offers portfolio managements systems, including Quotestream Desktop, We, and Mobile, a Web-delivered, embedded application providing real-time, tick-by-tick, streaming market quotes and research information; Quotestream Professional that offers low-latency tick-by-tick data, customizable screens, advanced charting, comprehensive technical analysis, news, and research data for financial services professionals; Web Portfolio Manager, which provides immediate web access to detailed quote data, market and company news, charting, depth/level II, filings, historical data, snap quotes, and others; and Quotestream Connect that delivers real time data feeds to individual users to power third party applications. The company was incorporated in 1992 and is headquartered in Fountain Hills, Arizona.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user’s trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product services for better displaying and promotion of its account and content; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, the People’s Republic of China.