58.com (NYSE: WUBA) and NIC (NASDAQ:EGOV) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Insider and Institutional Ownership
60.9% of 58.com shares are held by institutional investors. Comparatively, 93.0% of NIC shares are held by institutional investors. 11.9% of 58.com shares are held by company insiders. Comparatively, 4.1% of NIC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for 58.com and NIC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
58.com currently has a consensus target price of $50.63, indicating a potential downside of 34.46%. NIC has a consensus target price of $18.00, indicating a potential upside of 30.43%. Given NIC’s higher probable upside, analysts clearly believe NIC is more favorable than 58.com.
This table compares 58.com and NIC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares 58.com and NIC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|58.com||$1.14 billion||9.91||-$110.71 million||$0.74||104.38|
|NIC||$336.51 million||2.72||$51.61 million||$0.77||17.92|
NIC has lower revenue, but higher earnings than 58.com. NIC is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
58.com has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500. Comparatively, NIC has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.
NIC pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. 58.com does not pay a dividend. NIC pays out 41.6% of its earnings in the form of a dividend.
58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.
NIC Inc. is a provider of digital government services that help governments use technology to provide services to businesses and citizens. The Company operates through Outsourced Portals segment. The Company offers its services through two channels: primary outsourced portal businesses, and software and services businesses. In the primary outsourced portal businesses, the Company enters into contracts with state and local governments to design, build, and operate Internet-based, enterprise-wide portals on their behalf. Its software and services businesses include its subsidiaries that provide software development and payment processing services, other than outsourced portal services, to state and local governments, as well as federal agencies. The Company’s outsourced portal businesses include interactive government services (IGS), driver history records (DHR), Portal software development and services, and Portal management.
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