Analyzing Sohu.com (NASDAQ:SOHU) and STUB (NYSE:STUB)
by Kim Johansen · The Markets DailySTUB (NYSE:STUB – Get Free Report) and Sohu.com (NASDAQ:SOHU – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Valuation & Earnings
This table compares STUB and Sohu.com”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| STUB | $1.75 billion | 1.28 | -$1.91 billion | ($5.74) | -1.02 |
| Sohu.com | $584.33 million | 0.61 | $394.10 million | $8.57 | 1.59 |
Sohu.com has lower revenue, but higher earnings than STUB. STUB is trading at a lower price-to-earnings ratio than Sohu.com, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for STUB and Sohu.com, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| STUB | 2 | 7 | 5 | 0 | 2.21 |
| Sohu.com | 0 | 1 | 2 | 0 | 2.67 |
STUB currently has a consensus price target of $10.83, indicating a potential upside of 84.68%. Sohu.com has a consensus price target of $19.00, indicating a potential upside of 39.60%. Given STUB’s higher probable upside, analysts clearly believe STUB is more favorable than Sohu.com.
Profitability
This table compares STUB and Sohu.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| STUB | -93.54% | -9.50% | -2.67% |
| Sohu.com | 38.15% | 21.63% | 16.13% |
Insider & Institutional Ownership
33.0% of Sohu.com shares are held by institutional investors. 31.0% of STUB shares are held by insiders. Comparatively, 21.1% of Sohu.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Sohu.com beats STUB on 8 of the 13 factors compared between the two stocks.
About STUB
Stubhub Holdings Inc., through its subsidiaries, provides an online marketplace to buy and sell tickets for sports, concerts, theater, festivals and other live events. Stubhub Holdings Inc. is based in NEW YORK.
About Sohu.com
Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.