STUB (NYSE:STUB – Get Free Report) and GigaMedia (NASDAQ:GIGM – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
Valuation and Earnings
This table compares STUB and GigaMedia”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| STUB | $1.94 billion | 1.21 | -$1.91 billion | ($5.74) | -1.07 |
| GigaMedia | $3.47 million | 4.36 | -$1.55 million | $0.08 | 17.12 |
GigaMedia has lower revenue, but higher earnings than STUB. STUB is trading at a lower price-to-earnings ratio than GigaMedia, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
STUB has a beta of 3.44, suggesting that its stock price is 244% more volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Institutional & Insider Ownership
13.5% of GigaMedia shares are held by institutional investors. 31.0% of STUB shares are held by insiders. Comparatively, 1.0% of GigaMedia shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares STUB and GigaMedia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| STUB | -93.54% | -9.50% | -2.67% |
| GigaMedia | 12.95% | -0.25% | -0.23% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for STUB and GigaMedia, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| STUB | 2 | 6 | 6 | 0 | 2.29 |
| GigaMedia | 1 | 0 | 0 | 0 | 1.00 |
STUB currently has a consensus price target of $10.17, indicating a potential upside of 65.45%. Given STUB’s stronger consensus rating and higher possible upside, analysts clearly believe STUB is more favorable than GigaMedia.
Summary
GigaMedia beats STUB on 8 of the 14 factors compared between the two stocks.
About STUB
Stubhub Holdings Inc., through its subsidiaries, provides an online marketplace to buy and sell tickets for sports, concerts, theater, festivals and other live events. Stubhub Holdings Inc. is based in NEW YORK.
About GigaMedia
GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.
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