Head-To-Head Review: Connecture (CNXR) vs. Autohome (ATHM)

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

Analyst Recommendations

This is a summary of recent recommendations for Connecture and Autohome, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Autohome 0 0 4 0 3.00

Autohome has a consensus target price of $74.95, indicating a potential downside of 9.25%. Given Autohome’s higher probable upside, analysts clearly believe Autohome is more favorable than Connecture.

Earnings and Valuation

This table compares Connecture and Autohome’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Connecture $81.89 million 0.10 -$26.53 million ($0.92) -0.38
Autohome $338.13 million 28.86 $176.85 million $2.07 39.90

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

Institutional & Insider Ownership

37.6% of Connecture shares are owned by institutional investors. Comparatively, 37.1% of Autohome shares are owned by institutional investors. 68.6% of Connecture shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Connecture has a beta of 3.58, meaning that its share price is 258% more volatile than the S&P 500. Comparatively, Autohome has a beta of 2.28, meaning that its share price is 128% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Connecture -19.38% N/A -17.70%
Autohome 25.52% 23.48% 16.58%

Summary

Autohome beats Connecture on 9 of the 12 factors compared between the two stocks.

About Connecture

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

About Autohome

Autohome Inc. is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry. The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. The Company’s professionally produced content is created by editorial team and includes automobile-related articles and reviews, pricing trends in various local markets, and photos and video clips. Its database also includes new and used automobile listings and promotional information. Its dealer subscription services allow dealers to market their inventory and services through its Websites.

Receive News & Ratings for Connecture Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Connecture and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply