Sohu.com (NASDAQ:SOHU – Get Free Report) and Starz Entertainment (NASDAQ:STRZ – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Insider and Institutional Ownership
33.0% of Sohu.com shares are owned by institutional investors. 21.1% of Sohu.com shares are owned by company insiders. Comparatively, 22.6% of Starz Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Sohu.com and Starz Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sohu.com | 37.15% | 18.89% | 14.90% |
| Starz Entertainment | -32.52% | -34.04% | -7.03% |
Risk & Volatility
Sohu.com has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Starz Entertainment has a beta of 2.58, suggesting that its stock price is 158% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Sohu.com and Starz Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sohu.com | 0 | 1 | 2 | 0 | 2.67 |
| Starz Entertainment | 1 | 3 | 3 | 2 | 2.67 |
Sohu.com presently has a consensus target price of $18.70, suggesting a potential upside of 58.14%. Starz Entertainment has a consensus target price of $33.71, suggesting a potential upside of 30.25%. Given Sohu.com’s higher probable upside, equities analysts clearly believe Sohu.com is more favorable than Starz Entertainment.
Earnings and Valuation
This table compares Sohu.com and Starz Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sohu.com | $589.97 million | 0.52 | $394.10 million | $7.65 | 1.55 |
| Starz Entertainment | $963.40 million | 0.46 | -$115.80 million | ($24.36) | -1.06 |
Sohu.com has higher earnings, but lower revenue than Starz Entertainment. Starz Entertainment is trading at a lower price-to-earnings ratio than Sohu.com, indicating that it is currently the more affordable of the two stocks.
Summary
Sohu.com beats Starz Entertainment on 9 of the 14 factors compared between the two stocks.
About Sohu.com
Sohu.com Ltd. is a Chinese internet company that operates online media and video platforms. Its services include the Sohu.com portal and Sohu News, which provide news, information and other digital content to users in China. The company also operates online games through Changyou, its game development and publishing business. Changyou’s offerings include online games for PC and mobile devices. Founded in 1996 by Charles Zhang, Sohu was among China’s early internet companies. Zhang serves as the company’s chairman and chief executive officer, and Sohu’s services primarily serve the Chinese market.
About Starz Entertainment
Starz Entertainment is a premium entertainment company that operates the STARZ subscription television network and streaming service. Its offerings include original series, feature films and other programming available through the STARZ app and participating television and streaming distributors. The company primarily serves audiences in the United States and Canada, distributing its programming through both traditional pay-TV channels and digital subscriptions. Its brand portfolio has included the STARZ and STARZ ENCORE networks.
Receive News & Ratings for Sohu.com Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sohu.com and related companies with MarketBeat.com's FREE daily email newsletter.
