Head-To-Head Analysis: GigaMedia (NASDAQ:GIGM) vs. iHuman (NYSE:IH)

iHuman (NYSE:IH) and GigaMedia (NASDAQ:GIGM) are both small-cap communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Profitability

This table compares iHuman and GigaMedia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iHuman	9.35%	7.46%	5.40%
GigaMedia	-43.36%	-5.36%	-5.02%

Valuation & Earnings

This table compares iHuman and GigaMedia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iHuman	$115.40 million	0.50	$13.64 million	$0.19	5.95
GigaMedia	$3.47 million	4.36	-$1.55 million	($0.18)	-7.61

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

Risk & Volatility

iHuman has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for iHuman and GigaMedia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iHuman	1	0	0	0	1.00
GigaMedia	1	0	0	0	1.00

Insider & Institutional Ownership

4.9% of iHuman shares are held by institutional investors. Comparatively, 13.5% of GigaMedia shares are held by institutional investors. 63.6% of iHuman shares are held by insiders. Comparatively, 1.0% of GigaMedia shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

iHuman beats GigaMedia on 8 of the 11 factors compared between the two stocks.

About iHuman

iHuman Inc. provides intellectual development products to individual users, kindergartens, and distributors in the People’s Republic of China. The company offers interactive and self-directed learning apps, including iHuman Chinese, iHuman ABC, iHuman Pinyin, iHuman Magic Thinking, iHuman Books, iHuman Stories, iHuman Reading, iHumanpedia, iHuman Kids Workout, iHuman Coding, iHuman Fun Idioms, iHuman Little Artists, iHuman Writing, iHuman Fantastic Friends, and iHuman Readers; bekids Coding, bekids Coloring, bekids Reading, bekids Puzzle, bekids Academy, and Gogo Town; and Aha World, an open-ended interactive app that nurtures a desire for discovery. It provides intellectually stimulating materials, including books, interactive materials, and smart devices that develop children’s abilities in speaking, critical thinking, independent reading, and creativity. iHuman Inc. was founded in 1996 and is based in Beijing, the People’s Republic of China.

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.