Autohome (ATHM) vs. Angie’s List (ANGI) Financial Analysis

Autohome (NYSE: ATHM) and Angie’s List (NASDAQ:ANGI) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Autohome 23.17% 22.64% 15.55%
Angie’s List -4.62% -392.52% -8.71%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Autohome and Angie’s List, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autohome 0 1 4 0 2.80
Angie’s List 1 4 2 0 2.14

Autohome presently has a consensus target price of $50.00, indicating a potential downside of 22.37%. Angie’s List has a consensus target price of $10.25, indicating a potential downside of 14.73%. Given Angie’s List’s higher possible upside, analysts plainly believe Angie’s List is more favorable than Autohome.

Risk & Volatility

Autohome has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500. Comparatively, Angie’s List has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Institutional & Insider Ownership

34.5% of Autohome shares are owned by institutional investors. Comparatively, 70.4% of Angie’s List shares are owned by institutional investors. 5.7% of Autohome shares are owned by insiders. Comparatively, 18.2% of Angie’s List shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Autohome and Angie’s List’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Autohome $953.10 million 7.84 $232.19 million $1.87 34.44
Angie’s List $302.30 million 2.42 $3.60 million ($0.23) -52.26

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

Summary

Autohome beats Angie’s List on 10 of the 13 factors compared between the two stocks.

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.

About Angie’s List

Angie’s List, Inc. operates a national local services consumer review service and marketplace. As of December 31, 2016, the Company helped facilitate transactions between over five million members and its collection of service providers in over 700 categories of service nationwide. Its tools, services and content across multiple platforms enables consumers to research, shop for and purchase local services for needs, as well as rate and review the providers of these services across the United States. Its ratings and reviews assist its members in identifying and hiring the provider for their local service needs. Its services include member services and service provider services. It compiles a breadth of relevant, member-generated ratings and reviews that provide insights, which could otherwise be difficult for consumers to obtain on their own. Its primary source of service provider revenue is term-based sales of advertising to service providers.

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