Critical Comparison: Autohome (ATHM) versus Its Competitors

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

Risk & Volatility

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

Earnings and Valuation

This table compares Autohome and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Autohome $979.92 million $238.72 million 33.52
Autohome Competitors $942.22 million $116.70 million 53.49

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

Institutional and Insider Ownership

40.1% of Autohome shares are held by institutional investors. Comparatively, 74.3% of shares of all “Internet Services” companies are held by institutional investors. 19.5% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Autohome and its rivals’ 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 -0.09% 27.21% 6.31%

Analyst Ratings

This is a summary of recent ratings and target prices for Autohome and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autohome 0 0 4 0 3.00
Autohome Competitors 443 1697 2640 106 2.49

Autohome presently has a consensus target price of $58.33, suggesting a potential downside of 6.93%. As a group, “Internet Services” companies have a potential upside of 6.18%. Given Autohome’s rivals higher probable upside, analysts plainly believe Autohome has less favorable growth aspects than its rivals.

Summary

Autohome beats its rivals 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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