NerdWallet (NASDAQ:NRDS – Get Free Report) and Autohome (NYSE:ATHM – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Earnings & Valuation
This table compares NerdWallet and Autohome”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NerdWallet | $836.60 million | 0.57 | $48.70 million | $0.78 | 9.53 |
| Autohome | $5.49 billion | 0.46 | $225.19 million | $0.94 | 23.53 |
Autohome has higher revenue and earnings than NerdWallet. NerdWallet is trading at a lower price-to-earnings ratio than Autohome, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NerdWallet and Autohome’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NerdWallet | 6.06% | 15.56% | 12.25% |
| Autohome | 14.23% | 4.07% | 3.22% |
Insider and Institutional Ownership
38.8% of NerdWallet shares are owned by institutional investors. Comparatively, 63.1% of Autohome shares are owned by institutional investors. 52.7% of NerdWallet shares are owned by company insiders. Comparatively, 5.7% of Autohome shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
NerdWallet has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Autohome has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for NerdWallet and Autohome, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NerdWallet | 1 | 4 | 3 | 0 | 2.25 |
| Autohome | 1 | 4 | 1 | 1 | 2.29 |
NerdWallet currently has a consensus price target of $10.90, suggesting a potential upside of 46.70%. Autohome has a consensus price target of $19.95, suggesting a potential downside of 9.79%. Given NerdWallet’s higher possible upside, equities analysts clearly believe NerdWallet is more favorable than Autohome.
Summary
Autohome beats NerdWallet on 8 of the 15 factors compared between the two stocks.
About NerdWallet
NerdWallet, Inc. is a personal finance company that operates a digital platform to help consumers make financial decisions. Its website and mobile app provide educational content, comparison tools and recommendations across products such as credit cards, banking, mortgages, personal loans, insurance and investing services. The company was founded in 2009 by Tim Chen and offers services primarily in the United States, as well as in Canada and the United Kingdom. NerdWallet also serves small and midsize businesses with financial information and product recommendations.
About Autohome
Autohome Inc. operates online platforms focused on the automotive market in China. Through its websites and mobile applications, the company connects consumers with vehicle information and automotive businesses. Its platforms provide car reviews, news, model specifications, pricing information, photos, videos and user discussions. Autohome also offers automakers and dealers advertising, marketing, customer-lead generation and data services. Founded in 2005, Autohome serves consumers and automotive businesses across China.
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