Head to Head Analysis: Weibo (WB) and IHS Markit (INFO)

Weibo (NASDAQ:WB) and IHS Markit (NASDAQ:INFO) are both large-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Institutional & Insider Ownership

26.4% of Weibo shares are held by institutional investors. Comparatively, 97.6% of IHS Markit shares are held by institutional investors. 2.7% of IHS Markit shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Weibo and IHS Markit’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weibo $1.72 billion 7.96 $571.82 million $2.52 24.38
IHS Markit $4.01 billion 5.60 $542.30 million $1.98 28.38

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

Risk & Volatility

Weibo has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, IHS Markit has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Weibo and IHS Markit, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weibo 0 9 6 0 2.40
IHS Markit 1 4 9 0 2.57

Weibo presently has a consensus price target of $76.00, suggesting a potential upside of 23.72%. IHS Markit has a consensus price target of $58.62, suggesting a potential upside of 4.30%. Given Weibo’s higher possible upside, equities analysts plainly believe Weibo is more favorable than IHS Markit.

Profitability

This table compares Weibo and IHS Markit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weibo 33.27% 37.53% 19.09%
IHS Markit 9.96% 9.80% 4.97%

Summary

Weibo beats IHS Markit on 8 of the 14 factors compared between the two stocks.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates in two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted feeds, accounts, and trends and search products that enable its customers to promote their brands and conduct marketing activities. In addition, the company offers copyright content, such as TV channels, online video Websites, and operators with copyright content through traffic resource exchange and content traffic sharing; MCNs and other self-media to manage and provide services to content creators on Weibo, such as MCNs, unions, and e-commerce partners; other app developers an application platform, which allows users to log into third-party applications; and Weibo Wallet product that enables platform partners to conduct interest generation activities on Weibo. 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, China. Weibo Corporation is a subsidiary of Sina Corporation.

About IHS Markit

IHS Markit Ltd. provides critical information, analytics, and solutions for various industries and markets that drive economies worldwide. The company's information, analytics, and solutions enhance operational efficiency and offer deep insights for customers in business, finance, and government. Its Resources segment provides upstream, midstream, downstream, and power/gas/coal/renewables services. This segment also offers data for manufacturing processes, as well as capital expenditure, cost, price, production, trade, demand, and capacity industry analysis and forecasts. The company's Transportation segment provides authoritative analysis, as well as sales and production forecasts for light vehicles, medium and heavy commercial vehicles, powertrains, components, and technology systems; and performance measurement tools and marketing solutions for carmakers, dealers, and agencies. It also offers comprehensive data on ships, as well as monthly import and export statistics on approximately 90 countries; and specifications for military vehicles, naval vessels, and aircraft types. The company's Consolidated Markets & Solutions segment provides discovery technologies, research tools, and software-based engineering decision engines; components and devices, performance analytics, and end market intelligence for technology, media, and telecom industries; and economic and risk data, forecast, and analytic tools. Its Financial Services segment provides pricing and reference data, indices, valuation and trading services, trade processing, enterprise software, and managed services to traders, portfolio managers, risk managers, research professionals, and other financial markets participants, as well as operations, compliance, and enterprise data managers. IHS Markit Ltd. was founded in 1959 and is headquartered in London, the United Kingdom.

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