Baidu (NASDAQ:BIDU) & KE (NYSE:BEKE) Head-To-Head Survey

KE (NYSE:BEKE) and Baidu (NASDAQ:BIDU) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KE	3.37%	5.47%	2.99%
Baidu	21.00%	7.35%	4.66%

Institutional & Insider Ownership

39.3% of KE shares are held by institutional investors. 6.8% of KE shares are held by insiders. Comparatively, 16.7% of Baidu 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.

Risk and Volatility

KE has a beta of -0.64, indicating that its share price is 164% less volatile than the S&P 500. Comparatively, Baidu has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Valuation and Earnings

This table compares KE and Baidu”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KE	$12.80 billion	1.57	$556.89 million	$0.42	40.07
Baidu	$132.85 billion	0.30	$3.26 billion	$10.85	10.69

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

Analyst Ratings

This is a breakdown of recent recommendations for KE and Baidu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KE	0	2	5	0	2.71
Baidu	1	9	10	1	2.52

KE presently has a consensus target price of $23.30, indicating a potential upside of 38.45%. Baidu has a consensus target price of $131.00, indicating a potential upside of 12.93%. Given KE’s stronger consensus rating and higher possible upside, equities research analysts clearly believe KE is more favorable than Baidu.

Summary

Baidu beats KE on 10 of the 15 factors compared between the two stocks.

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.

About Baidu

Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.