HUYA (NYSE:HUYA) versus Baidu (NYSE:BIDU) Financial Analysis

HUYA (NYSE:HUYA) and Baidu (NASDAQ:BIDU) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for HUYA and Baidu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HUYA 0 0 11 0 3.00
Baidu 0 10 10 0 2.50

HUYA presently has a consensus target price of $28.27, suggesting a potential upside of 16.41%. Baidu has a consensus target price of $178.17, suggesting a potential upside of 54.08%. Given Baidu’s higher possible upside, analysts clearly believe Baidu is more favorable than HUYA.

Institutional and Insider Ownership

15.9% of HUYA shares are owned by institutional investors. Comparatively, 59.3% of Baidu shares are owned by institutional investors. 16.7% of Baidu shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares HUYA and Baidu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HUYA -35.91% 4.60% 3.70%
Baidu 19.38% 8.58% 5.02%

Risk & Volatility

HUYA has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500. Comparatively, Baidu has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Earnings and Valuation

This table compares HUYA and Baidu’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HUYA $678.27 million 7.21 -$281.83 million $0.10 242.80
Baidu $14.88 billion 2.72 $4.01 billion $7.80 14.82

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

Summary

Baidu beats HUYA on 9 of the 14 factors compared between the two stocks.

About HUYA

HUYA Inc., through its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company also provides advertising and online game-related services. As of December 31, 2017, its live streaming content covered approximately 2,600 games, including mobile, PC, and console games. The company was founded in 2014 and is based in Guangzhou, China. HUYA Inc. is a subsidiary of YY Inc.

About Baidu

Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI. The Baidu Core segment offers products for uses, including Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services through its other properties and Union partners; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Haokan, a short video app; and Quanmin, a flash video app for users to create and share short videos. It also provides Baidu Post Bar, a social media platform; Baidu Knows, a question-and-answer community where questions are asked, answered, and organized by users; Baidu Encyclopedia; Baidu Maps that offers locations, and intelligent routing and navigation services; Baidu Input Method Editor (IME), a Chinese-language mobile keyboard; Baidu WenKu; Baijiahao; and DuerOS, a voice assistant platform. In addition, this segment offers online marketing services, which include pay for performance (P4P), an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; Non-P4P services provide display-based marketing services and other online marketing services based on performance criteria other than cost per click; Apollo, an open source autonomous driving platform; and Baidu Cloud primarily provides AI solutions, cloud infrastructure, and other services to enterprises and individuals. The iQIYI segment provides online entertainment service, including original and licensed content; membership services; and online advertising services. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, China.

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



Leave a Reply