Reviewing CyberAgent (OTCMKTS:CYAGF) & iQIYI (NASDAQ:IQ)

CyberAgent (OTCMKTS:CYAGF) and iQIYI (NASDAQ:IQ) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CyberAgent	2.93%	12.20%	6.07%
iQIYI	0.32%	2.26%	0.66%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CyberAgent	0	1	0	0	2.00
iQIYI	2	4	3	0	2.11

iQIYI has a consensus price target of $2.51, indicating a potential upside of 15.32%. Given iQIYI’s stronger consensus rating and higher possible upside, analysts plainly believe iQIYI is more favorable than CyberAgent.

Institutional and Insider Ownership

52.7% of iQIYI shares are held by institutional investors. 57.8% of iQIYI 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.

Volatility & Risk

CyberAgent has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, iQIYI has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500.

Earnings & Valuation

This table compares CyberAgent and iQIYI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CyberAgent	$5.35 billion	0.82	$108.86 million	$0.40	21.75
iQIYI	$4.00 billion	0.52	$104.68 million	$0.01	218.00

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

Summary

CyberAgent beats iQIYI on 8 of the 14 factors compared between the two stocks.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.

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.