CreditRiskMonitor.com (OTCMKTS:CRMZ) vs. Weibo (NASDAQ:WB) Critical Review

CreditRiskMonitor.com (OTCMKTS:CRMZ) and Weibo (NASDAQ:WB) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Volatility and Risk

CreditRiskMonitor.com has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Weibo has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CreditRiskMonitor.com	7.47%	13.03%	5.92%
Weibo	26.58%	11.79%	6.46%

Analyst Ratings

This is a summary of recent recommendations for CreditRiskMonitor.com and Weibo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CreditRiskMonitor.com	0	0	0	0	0.00
Weibo	0	1	1	0	2.50

Weibo has a consensus price target of $14.00, indicating a potential upside of 32.83%. Given Weibo’s stronger consensus rating and higher possible upside, analysts plainly believe Weibo is more favorable than CreditRiskMonitor.com.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CreditRiskMonitor.com	$19.81 million	1.41	$1.67 million	$0.13	20.00
Weibo	$1.75 billion	1.47	$300.80 million	$1.76	5.99

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

Institutional & Insider Ownership

68.8% of Weibo shares are owned by institutional investors. 56.2% of CreditRiskMonitor.com shares are owned by company insiders. Comparatively, 41.3% of Weibo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Weibo beats CreditRiskMonitor.com on 10 of the 14 factors compared between the two stocks.

About CreditRiskMonitor.com

CreditRiskMonitor.com, Inc. engages in the provision of interactive business-to-business software-as-a-service (Saas) subscription products for corporate credit and procurement professionals in the United States. The company's products include CreditRiskMonitor product provides subscribers with unlimited usage and coverage of public and private companies, featuring multi-period spreads of financial reports and ratio analysis, credit risk scores, payment-behavior scores, trend reports, peer analysis, and credit limit recommendations, as well as up-to-date financial news screened specifically for materiality in credit evaluation; and SupplyChainMonitor, creates a risk management solution built specifically for procurement, supply chain, sourcing, and finance personnel involved in the supplier lifecycle, risk assessment, and ongoing risk monitoring. It also offers add-on subscription services, including Credit Limit Service product, available on the CreditRiskMonitor platform product, helps subscribers manage credit line limits for their customers, in light of changes in the customers' financial strength; Financial Statement Processing, and Confidential Financial Statement Tool products, provides subscribers a flexible option to help ease their process in the data entry and standardization of private company financial statements, as well as provides private company FRISK scores; and Confidential Financial Statement Portal, allows subscribers to invite their private company counterparties to enter or upload confidential financial statements to standardize and score to provide private company FRISK scores. The company was incorporated in 1977 and is based in Valley Cottage, New York. CreditRiskMonitor.com, Inc. operates as a subsidiary of Flum Partners.

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.