iQIYI (NASDAQ:IQ) and Autohome (NYSE:ATHM) Critical Comparison

iQIYI (NASDAQ:IQ) and Autohome (NYSE:ATHM) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

52.7% of iQIYI shares are owned by institutional investors. Comparatively, 63.1% of Autohome shares are owned by institutional investors. 57.8% of iQIYI 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 will outperform the market over the long term.

Valuation and Earnings

This table compares iQIYI and Autohome”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iQIYI	$27.67 billion	0.07	$104.68 million	$0.01	203.00
Autohome	$6.77 billion	0.48	$245.52 million	$1.70	16.50

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for iQIYI and Autohome, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iQIYI	2	4	3	0	2.11
Autohome	0	3	1	0	2.25

iQIYI currently has a consensus price target of $2.51, suggesting a potential upside of 23.84%. Autohome has a consensus price target of $36.00, suggesting a potential upside of 28.35%. Given Autohome’s stronger consensus rating and higher possible upside, analysts clearly believe Autohome is more favorable than iQIYI.

Profitability

This table compares iQIYI and Autohome’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iQIYI	0.32%	2.26%	0.66%
Autohome	21.74%	7.10%	5.66%

Risk & Volatility

iQIYI has a beta of -0.12, meaning that its share price is 112% less volatile than the S&P 500. Comparatively, Autohome has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Summary

Autohome beats iQIYI on 10 of the 14 factors compared between the two stocks.

About iQIYI

iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.

About Autohome

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company offers Autohome Mall, an online transaction platform; and online bidding platform for used automobiles, as well as collects commissions for facilitating transactions of auto-financing and insurance products on its platform. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the People’s Republic of China.