Autohome (ATHM) and Its Competitors Critical Contrast

Autohome (NYSE: ATHM) is one of 50 publicly-traded companies in the “Internet Services” industry, but how does it contrast to its peers? We will compare Autohome to related companies based on the strength of its valuation, earnings, profitability, dividends, institutional ownership, risk and analyst recommendations.

Insider and Institutional Ownership

40.1% of Autohome shares are held by institutional investors. Comparatively, 73.5% of shares of all “Internet Services” companies are held by institutional investors. 20.3% of shares of all “Internet Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Autohome has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500. Comparatively, Autohome’s peers have a beta of 1.36, meaning that their average share price is 36% more volatile than the S&P 500.

Profitability

This table compares Autohome and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autohome 23.17% 22.64% 15.55%
Autohome Competitors 0.37% 27.20% 6.30%

Valuation & Earnings

This table compares Autohome and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Autohome $958.29 million $233.45 million 35.48
Autohome Competitors $950.86 million $126.85 million 54.31

Autohome has higher revenue and earnings than its peers. Autohome is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for Autohome and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autohome 0 0 4 0 3.00
Autohome Competitors 441 1692 2628 105 2.49

Autohome presently has a consensus price target of $58.33, suggesting a potential downside of 12.08%. As a group, “Internet Services” companies have a potential upside of 6.70%. Given Autohome’s peers higher possible upside, analysts plainly believe Autohome has less favorable growth aspects than its peers.

Summary

Autohome beats its peers on 7 of the 13 factors compared.

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.




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